Skip to content
University of Maryland LibrariesDigital Repository at the University of Maryland
    • Login
    View Item 
    •   DRUM
    • Theses and Dissertations from UMD
    • UMD Theses and Dissertations
    • View Item
    •   DRUM
    • Theses and Dissertations from UMD
    • UMD Theses and Dissertations
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    The Value of IT-Enabled Retailer Learning: Can Personalized Product Recommendations (PPRs) Improve Customer Store Loyalty in Electronic Markets?

    Thumbnail
    View/Open
    umi-umd-2813.pdf (1.807Mb)
    No. of downloads: 2017

    Date
    2005-08-24
    Author
    Zhang, Tongxiao
    Advisor
    Agarwal, Ritu
    Lucas, Hank
    Metadata
    Show full item record
    Abstract
    Personalization is a strategy that has been widely adopted by online retailers to enhance their customers' shopping experience, with the ultimate goal of building a strong and enduring customer relationship. Personalized product recommendations (PPRs) are product recommendations adapted to individual customers' preferences and taste. So far, very few empirical studies have ever investigated the impact of PPRs from a consumer behavior perspective. Whether PPRs generate any value for consumers and ultimately, retailers, is still an open question. To fill this gap in the literature, in this study, drawing upon the household production function model in the consumer economics literature, I develop a theoretical framework that explains the mechanism through which PPRs influence customer store loyalty in electronic markets. Online shopping can be viewed as a household production process and customer store loyalty is driven by shopping efficiency. Building upon retailer learning, higher quality PPRs can increase consumers' online product brokering efficiency, which in turn increases their repurchase intention. A two-phase lab experiment was conducted among 253 undergraduate students in the business school. The subjects completed a simulated purchase at Amazon.com and the quality of PPRs they received was manipulated. Empirical analyses indicate that higher quality PPRs improve consumers' online product brokering quality, which in turn increases their repurchase intention. Consumers make higher quality purchase decisions and experience more fun during the online product brokering process. A surprising finding is that higher quality PPRs increase consumer online product brokering cost. Consumers spend more time on decision making and have more difficulty reaching a purchase decision. Implications, limitations, and contributions of this study are discussed and areas for future research are suggested.
    URI
    http://hdl.handle.net/1903/2820
    Collections
    • Decision, Operations & Information Technologies Theses and Dissertations
    • UMD Theses and Dissertations

    DRUM is brought to you by the University of Maryland Libraries
    University of Maryland, College Park, MD 20742-7011 (301)314-1328.
    Please send us your comments.
    Web Accessibility
     

     

    Browse

    All of DRUMCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister
    Pages
    About DRUMAbout Download Statistics

    DRUM is brought to you by the University of Maryland Libraries
    University of Maryland, College Park, MD 20742-7011 (301)314-1328.
    Please send us your comments.
    Web Accessibility