Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Exploring the factors associated with Web site success in the context of electronic commerce
Information and Management
The Measurement of Web-Customer Satisfaction: An Expectation and Disconfirmation Approach
Information Systems Research
Web Usage Mining as a Tool for Personalization: A Survey
User Modeling and User-Adapted Interaction
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
The Role of the Management Sciences in Research on Personalization
Management Science
Building Effective Online Marketplaces with Institution-Based Trust
Information Systems Research
Personalization versus Privacy: An Empirical Examination of the Online Consumer's Dilemma
Information Technology and Management
Research Note: The Influence of Recommendations and Consumer Reviews on Evaluations of Websites
Information Systems Research
Information Systems Research
Role of word of mouth in online store loyalty
Communications of the ACM - Urban sensing: out of the woods
Web Personalization: Is It Effective?
IT Professional
Assessing the impact of internet agent on end users' performance
Decision Support Systems
Trust and TAM in online shopping: an integrated model
MIS Quarterly
Influence of Query-Based Decision Aids on Consumer Decision Making in Electronic Commerce
Information Resources Management Journal
The Role of Extrinsic Cues in Consumer Decision Process in Online Shopping Environments
Journal of Electronic Commerce in Organizations
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Recent research has acknowledged the key role of information technology in helping build stronger and more enduring customer relationships. Personalized product recommendations (PPRs) adapted to individual customers' preferences and tastes are one IT-enabled strategy that has been widely adopted by online retailers to enhance customers' shopping experience. Although many online retailers have implemented PPRs on their electronic storefronts to improve customer retention, empirical evidence for the effects of PPRs on retention is sparse, and the limited anecdotal evidence is contradictory. We draw upon the household production function model in the consumer economics literature to develop a theoretical framework that explains the mechanisms through which PPRs influence customer store loyalty in electronic markets. We suggest that retailer learning that occurs as a result of customer knowledge obtained to enable personalization influences the efficiency of the online product brokering activity. Data collected from a two-phase lab experiment with 253 student subjects where the quality of PPRs was manipulated are used to empirically test the predictions of the theoretical model. Empirical analyses of the data indicate that retailer learning reflected in higher quality PPRs is associated with lower product screening cost, but higher product evaluation cost. We further find that higher quality PPRs are associated with greater value derived by consumers from the online product brokering activity in terms of higher decision making quality, which is positively associated with repurchase intention. The paper presents the implications, limitations, and contributions of this study along with areas for future research.