Measuring Decision Quality Using Recommendation Agents

45 Pages Posted: 5 Jun 2008  

Lerzan Aksoy

Koc University

Bruce Cooil

Vanderbilt University - Statistics

Nicholas H. Lurie

University of Connecticut School of Business

Date Written: June 2008

Abstract

In addition to helping consumers make better decisions, the use of electronic recommendation agents provides a way for marketers to gather information and assess the quality of consumer decisions. The use and type of agent employed determines the types of measures of decision quality that can be employed by online providers. We examine the assumptions of and relationships among preference-dependent, preference-independent, and subjective measures of decision quality. Analysis of data from a series of experiments that simulate a broad spectrum of recommendation agent approaches shows that preference-independent measures capture about 63% of the variance of preference-dependent measures and that subjective measures capture 9% of the variance of preference-dependent and preference-independent measures. In addition, a superior and parsimonious measure of decision quality can be obtained by selectively combining these measures. Managerial implications for deploying electronic recommendation agents are discussed.

Keywords: Decision quality, decision making, measurement, preference measurement, latent-class analysis, recommendation agent, online

Suggested Citation

Aksoy, Lerzan and Cooil, Bruce and Lurie, Nicholas H., Measuring Decision Quality Using Recommendation Agents (June 2008). Available at SSRN: https://ssrn.com/abstract=1140744 or http://dx.doi.org/10.2139/ssrn.1140744

Lerzan Aksoy (Contact Author)

Koc University ( email )

Cayir Cad. No: 5 Istinye
Sariyer 80910, Istanbul, 34450
Turkey

Bruce Cooil

Vanderbilt University - Statistics ( email )

Nashville, TN 37203
United States

Nicholas H. Lurie

University of Connecticut School of Business ( email )

Storrs, CT CT - Connecticut 06269
United States

HOME PAGE: http://www.business.uconn.edu/person/nicholas-lurie/

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