Smart versus knowledgeable online recommendation agents

This paper studies how smart recommendation agents (those that filter and integrate information and offer feedback to customers) influence consumer decision making in online stores, in comparison to recommendation agents that are merely “knowledgeable” of the alternative options that exist in a product assortment. The cognitive cost model is used to propose hypotheses that link information search and alternative evaluation with two shopping environment influences that are typical of online settings. A study that simulates search and evaluation in a Web-based choice environment is conducted to test the hypotheses. The results offer insights into how the “feedback” provided by a recommendation agent on the product options available may have an effect on search and evaluation in an online store.