The Effect of Feedback and Learning on Dss Evaluations

Posted: 26 Aug 2006

See all articles by U. Kayande

U. Kayande

Pennsylvania State University - Institute for the Study of Business Markets

Arnaud De Bruyn

ESSEC Business School

Gary L. Lilien

Pennsylvania State University - Institute for the Study of Business Markets

Arvind Rangaswamy

Pennsylvania State University - Department of Marketing

G.H. van Bruggen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: January 26, 2006

Abstract

Model-based decision support systems (DSSs), designed to help decision-makers make better decisions, often do not help decision makers understand either how or why they work. As a result, there is likely to be a large gap between a managers mental model and the decision model embedded in the DSS. We suggest that this gap is an important reason for the poor subjective evaluations of DSSs, even when the DSSs have been shown to be of high objective quality, ultimately resulting in unexpectedly poor DSS adoption and usage. In this paper, we hypothesize that to increase its effectiveness, a DSS should not only be of high quality, but must also help reduce any mental model-DSS model gap. We evaluate two design characteristics that together lead users to update their mental models, resulting in better DSS evaluations: providing feedback on upside potential and providing suggestions for corrective actions. We hypothesize that, in tandem, these two types of feedback induce managers to update their mental models, a process we call deep learning, whereas individually, these two types of feedback will only have a small or negligible effect on deep learning. We validate our framework in an experimental setting, using a realistic DSS in a direct marketing context. We conclude with a discussion of both the theoretical and practical implications of our findings.

Keywords: Marketing Decision Models, DSS, Decision Making, Learning, Feedback

Keywords: Marketing Decision Models, DSS, Decision Making, Learning, Feedback

JEL Classification: M, C44, M31, C53

Suggested Citation

Kayande, Ujwal and De Bruyn, Arnaud and Lilien, Gary L. and Rangaswamy, Arvind and van Bruggen, Gerrit H., The Effect of Feedback and Learning on Dss Evaluations (January 26, 2006). ERIM Report Series Reference No. ERS-2006-001-MKT, Available at SSRN: https://ssrn.com/abstract=878565

Ujwal Kayande (Contact Author)

Pennsylvania State University - Institute for the Study of Business Markets ( email )

University Park, PA 16802-3306
United States

Arnaud De Bruyn

ESSEC Business School ( email )

France

Gary L. Lilien

Pennsylvania State University - Institute for the Study of Business Markets ( email )

University Park, PA 16802-3306
United States
814-863-2782 (Phone)
814-863-0413 (Fax)

HOME PAGE: http://www.smeal.psu.edu/isbm/about/people/LILIEN.

Arvind Rangaswamy

Pennsylvania State University - Department of Marketing ( email )

University Park, PA 16802-3306
United States

Gerrit H. Van Bruggen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2258 (Phone)
+31 10 408 9011 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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