Effects of recommendation systems on consumer inferences of website motives and attitudes towards a website

Hyun Ju Jeong

University of Kentucky

Mira Lee

Chung-Ang University

Introduction

Personalisation – defined as the process of using information about a consumer’s preferences to match offerings to that consumer (Murthi & Sarkar 2003) – is one characteristic of internet advertising (McMillan 2007). E-commerce websites, one of the various types of internet advertising (McMillan 2007), provide consumers with personalised product recommendations by employing recommendation systems (RS) – computerised recommendation agents incorporated into e-commerce websites to suggest products for consumers to buy based on their needs (Maes et al. 1999). According to a report by Miva Merchant (2010), 17% to 19.2% of e-marketers’ revenue came from product sales through RS on their websites in 2010. Additionally, e-marketers have recently recovered up to 30% of their lost sales, after providing consumers with customised product recommendations using RS (PRWeb 2012).