The impact of ordered alternative lists on decision quality in online shopping environments: The role of perceived similarity

Consumers frequently use search agents in online shopping environments. These agents sort through vast amounts of information and, based on pre-specified criteria, return ranked product alternative lists that help consumers decide which product to buy. A key hypothesis being tested is that perceived similarity of the search agent with the consumer will influence perceived benefits and perceived costs of using ordered listings, amount of information search and ultimately consumer decision quality. A two-dimensional (subjective and objective) model of decision quality is proposed and tested.; The two factors manipulated in study 1 were: (1) degree of similarity between the attribute weights used by the search agent in generating the ordered alternative list and the consumers' own attribute weights, and (2) indirectly varying perceived decision strategy similarity by getting subjects to think about a possible incongruity between the weighted additive multi attribute utility model (WAM) used by the search agent in generating the list and the consumers' preferred decision strategy.; Results of study 1 revealed that similarity of attribute weights used by the search agent with the consumers' own preferences (attribute weights) positively influenced perceived benefits and improved decision quality and decreased perceived costs of using the alternative listings. Results of study 1 revealed that consumers' perceptions of the ability of the search agent to capture their decision strategy (e.g. WAM, lexicographic, etc.) was a more important determinant of decision quality.; Study 2 therefore manipulated (1) attribute weight similarity and (2) the perceptions of similarity (fit) with decision strategy more directly by manipulating the perceived fit or lack of fit of the agent's ordering algorithm with the consumers' decision strategy and compared these results to a situation where no information was provided on decision strategy. The results supported findings from study 1. In addition, there was an interaction effect between decision strategy similarity and attribute weight similarity.; Findings of this research will have important implications for managers, consumers and public policy makers. Managers will be able to design search agents offered in their web sites more effectively, consumers will be more satisfied with their choices, and hence consumer welfare should be improved.