Investigation of Experience Curve Effects While Processing Visual Representations of Financial Data for Managerial Decision Making: A Triangulated Longitudinal Study
48 Pages Posted: 20 Jun 2015
Date Written: May 22, 2015
Whereas learning and the experience curve have been closely investigated in production for decades there could be found hardly any closer examination on this issue in the field of processing visual representations of financial data. In the research area of information perception there are two major theories, the information processing theory and the theory of cognitive load, that point towards the existence of an experience curve. A major drawback of prior experimental studies, that approach this issue primarily by observing different subject groups with different levels of experience, is that the experience curve itself is not investigated more closely. This paper aims to contribute in closing the research gap by conducting a longitudinal study for the repetitive perception of static visual representations of financial data. The longitudinal study is set up over eight trials to examine the distinctiveness of the experience curve effect when it comes to efficiency and effectiveness in perception, processing and decision making while viewing static visual representations of financial data. In addition, a ninth trial investigates a potential resistance when familiarity with a visual representation is disrupted. Results reveal the existence of an experience curve effect regarding efficiency and effectiveness. Familiarity with a visual representation takes hold for the experience curve effect in the first few trials. However, overall experience with visual representations regardless of familiarity with the type, and experience with the task types have a stronger influence on the experience curve effect in the long run. Control variables, namely working memory capacity and prior experience on visual representations, do not affect the experience curve effect in terms of efficiency and effectiveness in this study.
Keywords: experience curve, visual representation of financial data, perception, longitudinal study
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