P oceedings o he 50 h Hawaii In e na ional Con e ence on Sys em Sciences | 2017
Pe sonalized P oduc Recommenda ions: E idence om he Field
Essi Pöy y
Aal o Uni e si y
essi.poy y@
aal o. i
Ninni Hie aniemi
Aal o Uni e si y
ninni.hie aniemi@
aal o. i
Pe i Pa inen
Uni e si y o Helsinki
pe i.pa inen@
helsinki. i
Juho Hama i
Uni e si y o Tampe e
juho.hama i@
s a .u a. i
Mau i s Kap ein
Tilbu g Uni e si y
m.c.kap ein@
ilbu guni e si y.edu
Abs ac
Ta ge ing pe sonalized p oduc ecommenda ions
o indi idual cus ome s has become a mains eam
ac i i y in online s o es as i has been shown o
inc ease click- h ough a e and sales. Howe e , as
pe sonaliza ion becomes inc easingly commonplace,
cus ome s may eel pe sonalized con en in usi e and
he e o e no esponding o e en a oiding hem.
Many s udies ha e in es iga ed ad e ising
in usi eness and a oidance bu a esea ch gap on he
e ec o deg ee o pe sonaliza ion on cus ome
esponses based on ield e idence exis s. In his pape ,
27,175 ecommenda ion displays om i e di e en
online s o es a e analyzed. The esul s show ha he
u he he cus ome is in he pu chasing p ocess, he
mo e e ec i e pe sonaliza ion is i i is based on
in o ma ion abou he p esen a he han pas
b owsing session. Mo eo e , ecommenda ions in
passi e o m a e mo e e ec i e han
ecommenda ions in ac i e o m sugges ing he need
o dispel he pe cep ion o in usi eness.
1. In oduc ion
Pe sonalized elemen s ha e become an essen ial
pa o online s o es. Elemen s ha can be
pe sonalized include o example welcome messages,
s o e layou , sales a gumen s o p oduc
ecommenda ions [5, 6, 14, 15]. The aim o
pe sonaliza ion is o inc ease sales h ough mo e
pe suasi e, sui ed and ele an con en , and, in
gene al, pe sonaliza ion has been shown o inc ease
click- h ough a es [e.g., 21] and sales [e.g., 14, 15].
Howe e , pe sonalized ad e isemen s may esul
in ad e isemen eac ance and ul ima ely a oidance
among consume s because a ge ed ecommenda ions
may be pe cei ed as oo in usi e [4, 11]. Ad e ising
li e a u e has ex ensi ely s udied ad e isemen
in usi eness [e.g., 12, 18] bu esea ch on
in usi eness o pe sonalized online con en wi h ield
da a is limi ed. Whi e and colleagues [30] and an
Doo n and Hoeks a [28] ha e s udied he deg ee o
pe sonaliza ion in e-mail messages and online
ad e isemen s bu bo h s udies u ilize hypo he ical
scena io-based da a. Field da a is pa icula ly aluable
because in ac ual pu chase si ua ions consume s may
URI: h p://hdl.handle.ne /10125/41626
ISBN: 978-0-9981331-0-2
CC-BY-NC-ND
no always ecognize ha some con en is
pe sonalized. In labo a o y expe imen s pe sonalized
elemen s a e usually highligh ed wi h a ious cues
and he e o e c ea e a nega i e mindse .
The aim o his s udy is o p o ide an
unde s anding on how he deg ee o pe sonaliza ion in
p oduc ecommenda ions a ec s consume esponses
in di e en s ages o buying. In addi ion, he pu pose
is o measu e pe cei ed in usi eness o pe sonalized
p oduc ecommenda ions. The s udy is conduc ed by
using da a om i e di e en online s o es and en
di e en pe sonalized p oduc ecommenda ion
ad e isemen s. The decisions ega ding he
ad e isemen s – hei wo ding, hei placemen , he
base o hei pe sonaliza ion – we e na u al in a sense
ha he esea che s did no ha e any in luence o e
hem. Thus, he p esen pape con ibu es o he
li e a u e on pe sonaliza ion by showing how he
deg ee o pe sonaliza ion a ec s consume s’ ac ual
clicking beha io in online shopping con ex .
2. Theo e ical backg ound
2.1. Online pe sonaliza ion and ecommende
sys ems
Cus ome in o ma ion can be used o ailo
p oduc s, se ices and consump ion expe iences o i
he speci ic needs and as es o cus ome s [6]. Kap ein
and Pa inen [15] de ine online pe sonaliza ion as he
ac o speci ically selec ing con en o indi idual
cus ome s based on p ope ies o he cus ome wi h
he goal o inc easing business ou comes o an e-
comme ce pla o m. In p ac ice, his equi es
iden i ying he cus ome , ga he ing in o ma ion abou
him o he and p ocessing da a o p o ide
ecommenda ions [6]. Acco ding o Chellappa and
Sin [6], a ailabili y o po en ial cus ome in o ma ion
is la gely a ec ed by how willing cus ome s a e o
sha e hei pe sonal in o ma ion and use pe sonalized
se ices.
In online s o es, he e a e di e en hings ha can
be pe sonalized. Lee and Pa k [17] iden i y h ee a eas
o pe sonaliza ion: o e , ecogni ion and pe sonal
ad ice. O e includes op ions o pe sonalizing wish
lis s as well as pe sonalized ewa ds and p omo ion
eminde s. Recogni ion s ands o using he
cus ome ’s name, and p o iding op ions o sa e
3859
Published in P oceedings o he 50 h Hawaii In e na ional Con e ence on Sys em Sciences (HICSS 2017) (pp. 3859-3867). Uni e si y o Hawai´i a
Manoa. ISBN: 978-0-9981331-0-2. h p://dx.doi.o g/10.24251/HICSS.2017.467.
3860
pe sonal and inancial in o ma ion. Pe sonal ad ice
consis s o pe sonalized shopping and sea ch ea u es.
On he o he hand, pe sonaliza ion can be based on a
a ie y o ac o s. Van Doo n and Hoeks a [28]
sugges ha online con en can be pe sonalized based
on b owsing da a, pe sonal da a, and/o ansac ion
da a.
Online pe sonaliza ion can be a gued o inc ease
in o ma ion sea ch p ocess e iciency because i aids
cus ome s in making decisions and p e en s
in o ma ion o e load. [3, 6]. As a consequence,
pe sonaliza ion can lead o inc eased sales [3, 21].
Fo example, Pos ma and B okke [21] showed ha
pe sonalized e-mail messages gene a e highe click-
h ough a es han non-pe sonalized messages.
Pe sonalized p oduc ecommenda ions o m one
ca ego y o online pe sonaliza ion. Recommende
sys ems gene a e ecommenda ions based on
cus ome s’ b owsing his o y and p e iously
de eloped da a sou ces [5]. The sys ems a e applied
o help cus ome s in making pu chase decisions and
p e en in o ma ion o e load by ma ching he
cus ome ’s needs and p e e ences wi h sui able
p oduc ecommenda ions [1, 22]. The e o e,
ecommende sys ems o en succeed in in luencing
he choices consume s make [13].
As in he case o gene al online pe sonaliza ion,
he e a e a ious ways how p oduc ecommenda ions
a e gene a ed. Typically, ecommenda ions a e made
based on cus ome s’ exp essed p e e ences, pe sonal
in o ma ion o pas beha io [2, 5, 27]. In p ac ice,
his would mean o example sugges ions on wha o
buy based on al eady selec ed p oduc s o on wha
o he consume s exp essing simila needs ha e
bough . Scha e e al. [23] p opose ha he e a e ou
di e en o ms o ecommenda ions: Sugges ing
p oduc s o cus ome s, p o iding pe sonalized
p oduc in o ma ion, summa izing communi y
opinion, and p o iding communi y c i iques. Cheung
e al. [8] ca ego ize ecommende sys ems in o
con en -based and collabo a i e sys ems based on he
echnology ha is used. Con en -based
ecommenda ions a e made based on he in e es s and
p e e ences o a consume wi hou aking in o ma ion
collec ed on o he consume s in o conside a ion.
Collabo a i e ecommenda ions a e based on he
p e e ences o o he simila consume s.
2.2. Ad e ising in usi eness, eac ance and
a oidance
When discussing ad e ising, sales p omo ions o
o he pe suasi e communica ions, cus ome ’s
pe spec i e should also be conside ed, and some imes
cus ome s dislike he communica ion hey a e
a ge ed wi h. Thus, ad e ising is some imes
pe cei ed as in usi e. Li and colleagues [18] de ine
in usi eness as “a pe cep ion o psychological
consequence ha occu s when an audience’s
cogni i e p ocesses a e in e up ed”. In he
ad e ising con ex , ad e isemen s can be conside ed
in usi e when a pe son pe cei es hem as
in e up ing his o he goals. A ypical emo ional
consequence o ad e isemen in usi eness is
i i a ion [19]. Typical causes o inc eased
in usi eness and i i a ion a e loud and dis u bing
ad e isemen s o ad e isemen s ha a e placed in a
dis ac ing way [18]. E-mail ma ke ing and pop-up
ad e isemen s a e equen examples o in usi e
online ad e ising [4, 12].
In beha io al e ms, ad e ising in usi eness can
cause consume s o eac nega i ely o he
ad e isemen and s a a oiding i . Acco ding o
Edwa ds and colleagues [12], heo y o eac ance
desc ibes he e ec he loss o eedom o a h ea ened
loss o eedom has on people. I sugges s ha when
aced wi h a h ea o losing eedom, eac ance
c ea es a mo i a ional s a e in an indi idual o e-
gaining eedom. Reac ance beha io has also been
obse ed in he case pe sonalized online ad e ising
[28, 30].
Ad e ising a oidance, on he o he hand, is
de ined as he ac ions o media use s o in en ionally
educing exposu e o ad e isemen s [26]. The e a e
di e en ways ha consume s use o a oid
ad e isemen s. Tele ision comme cials ha e been a
popula subjec o s udy, and Clancey [10] sugges s
ha he e a e h ee ways o a oiding ele ision
comme cials: cogni i e a oidance (igno ing he ad),
physical a oidance (lea ing oom) and mechanical
a oidance (swi ching channel). These ways can also
be applied o online ad e ising: igno ing he ad,
closing b owse , and using p og ams ha block online
ad e isemen s, such as AdBlock.
Cho [9] a gues ha ad e ising a oidance in he
In e ne is a esul o p e ious nega i e expe iences,
pe cei ed hind ance o achie ing a goal and pe cei ed
clu e o ads. A mo e ecen s udy by Baek and
Mo imo o [4] sugges ha he e a e h ee
de e minan s o ad e isemen a oidance: p i acy
conce ns, ad e isemen i i a ion and pe cei ed
pe sonaliza ion. P i acy conce ns and ad i i a ion
inc ease ad e isemen a oidance whe eas inc eased
pe sonaliza ion was ound o dec ease a oidance. In
addi ion, p i acy conce ns a e an ex ensi e conce n
among consume s as companies use hei pe sonal
in o ma ion when p o iding pe sonalized online
se ices [6, 27]. Pe sonalized messages may c ea e
eac ance i indi iduals pe cei e hem as oo pe sonal
and eel ha hey do no ha e con ol o e how hei
pe sonal in o ma ion is used [4].
3. Resea ch model and hypo heses
Based on he li e a u e e iew, i is clea ha he e
exis s a ade-o be ween pe sonaliza ion o online
con en and eelings o i i a ion ha a e due o
pe cei ed ad e isemen in usi eness. Baek and
Mo imo o [4] ound ha inc eased pe sonaliza ion
can dec ease ad e isemen a oidance, while Van
3861
Doo n and Hoeks a [28] ound ha highe deg ees o
pe sonaliza ion inc ease pe cei ed in usi eness,
which in u n a ec s buying in en ions nega i ely.
Whi e and colleagues [30], on he o he hand, showed
ha high deg ees o pe sonaliza ion in e-mail
messages esul s in eac ance. The esul s sugges ha
jus i ica ion and pe cei ed u ili y a e ac o s ha
dec ease eac ance.
Howe e , p e ious li e a u e has no conside ed
he e ec he s age o buying migh ha e on he
e ec i eness o pe sonalized online con en , o he
basis on which he con en has been pe sonalized.
These a e ypical a ian s in he ealm o online s o es,
and mo e o en han no , hey a e no explici ly
ecognized by consume s. This is a no able di e ence
o p e ious esea ch ha o en uses ecipien names as
one pe sonaliza ion aspec [e.g., 28]. Howe e ,
esea ch has no conside ed he e ec o o m o he
messages has – a e consume s add essed di ec ly
using ac i e o m o indi ec ly using passi e o m.
Nex , we cons uc hypo heses based on hese
a iables.
3.1. S age o buying
Li e a u e on online pe sonaliza ion is limi ed in
e ms o he e ec he s age o a cus ome ’s pu chase
p ocess has on he e ec i eness o he
ecommenda ions. In sales li e a u e, he poin a
which a sales call is made has been seen o a ec
cus ome esponse [e.g., 20, 25]. Simila ly, we belie e
ha cus ome eac ions on pe sonalized p oduc
ecommenda ions in online s o es a y in e ms o he
s age o buying p ocess; in he beginning, a cus ome
migh ha e a p oduc in mind ha he o she wan s o
ind and is less esponsi e o he selle ’s
ecommenda ions. La e , howe e , he immedia e
need o isi he s o e has mo e likely been ul illed
(e.g., ind in o ma ion abou a speci ic p oduc [11])
and he cus ome is mo e open owa ds he selle ’s
sugges ions. Thus, we make a dis inc ion be ween
p oduc ecommenda ions shown on he on page o
an online s o e and p oduc ecommenda ions shown
on pages u he in he shopping p ocess, such as
ca ego y, p oduc and pu chase pages, and
hypo hesize he ollowing:
H1: Recommenda ions on he on page gene a e
ewe clicks han ecommenda ions on la e pages.
3.2. Message o m
Wa al and colleagues [29] dis inc be ween
implici and explici pe sonaliza ion. The dis inc ion
can be also e e ed o as passi e and ac i e message
o m. A ecommenda ion using ac i e o m speaks o
he cus ome explici ly by using wo dings such as “we
ecommend o you”. Passi e o m e e s o
ecommenda ions such as “o he s who iewed his
also bough ” o “ he mos popula igh now”. Passi e
o m is also o en used when ecommenda ions a e
made by he company such as “picks o he day”. In
p ac ice, ecommenda ions in passi e o m a e
ypically based on in o ma ion on o he use s and
ecommenda ions in ac i e o m on in o ma ion on
he cu en use . Howe e , i is no necessa ily so, and
ecommenda ions in passi e o m can be based on
in o ma ion on he cu en use , and ice e sa.
The assump ion on he basis o he
ecommenda ion is ne e heless easily made by a
consume based on he o m o he ecommenda ion.
Ac i e message o m ep esen s p oduc
ecommenda ions ha imply ha he
ecommenda ions a e made speci ically o he
cus ome . A message in passi e o m may no seem
pe sonalized and does no imply ha he
ecommenda ion is a sugges ion o a pa icula
cus ome . Thus, ac i e message o m ep esen a
highe le el o pe sonaliza ion in he eyes o he
cus ome . As esea ch shows ha using he
cus ome ’s name in pe sonalized ad e isemen s
inc eases pe cei ed in usi eness and he eby
dec eases pu chase in en ions [28, 29], we
hypo hesize ha consume s espond be e o
ecommenda ions in passi e a he han ac i e o m:
H2: Recommenda ions in passi e o m gene a e
mo e clicks han ecommenda ions in ac i e o m.
3.3. In e ac ion o s age o buying and
message o m
Whi e and colleagues [28] show ha click- h ough
in en ions a e lowe o pe sonalized messages ha
use explici cus ome da a and when he i be ween
he ad e isemen and he cus ome need is low. P io
esea ch also sugges s ha e-mail ad e isemen s ha
do no men ion he use o cus ome in o ma ion a e
pe cei ed as mo e a ac i e, while cus ome s eac
nega i ely o ad e isemen s ha explici ly use
pe sonal in o ma ion, such as ones name in a
pe sonalized g ee ing [28, 29]. Acco ding o Wa al
and colleagues [29], he nega i e eac ion is mos ly
due o he conce ns o he sou ces and uses o pe sonal
in o ma ion. Also Baek and Mo imo o [4] ha e shown
ha oo explici ly pe sonal messages a e easily
pe cei ed nega i ely by consume s.
Mos consume s a e o en awa e ha p omo ions
and o e s made by ma ke e s come wi h an agenda
[7]. Mo eo e , p oduc ecommenda ions ha
cus ome s pe cei e as i hey ha e been made o i
hei needs by a company a e less a ac i e han
p oduc ecommenda ions ha i hei p e e ences
wi hou he company’s meaning [24]. Sela e al. [24]
u he p opose ha elling consume s ha an o e is
ailo ed o hem can lowe he deg ee o which
consume s pe cei e he o e s as ba gains. The
esea che s explain he inding by he idea o a
compe i i e ela ionship be ween consume s and
ma ke e s, acco ding o which a gain o ei he side is
3862
hough o come a he expense o he o he side. Thus,
in his s udy, i is p oposed ha p oduc
ecommenda ions using a passi e a he han ac i e
message o m a e mo e e ec i e pa icula ly in la e
s ages o a buying p ocess. This is because in he la e
s ages he cus ome becomes mo e awa e o he
selle ’s in en o pe suade he cus ome o buy. Thus,
we hypo hesize:
H3: Recommenda ions on la e pages gene a e
mo e clicks i hey a e in passi e o m a he han
ac i e o m.
3.4. In e ac ion o s age o buying and base o
pe sonaliza ion
In his s udy, base o pe sonaliza ion desc ibes
wha in o ma ion has been used in making a p oduc
ecommenda ion. Pe sonaliza ion can be based on he
p esen b owsing session, pas b owsing session o i
can be a andom p oduc ecommenda ion. Pas
session-based p oduc ecommenda ions a e used
when an online s o e has acqui ed b owsing
in o ma ion om a cus ome ’s p e ious isi , and uses
his da a in making a p oduc ecommenda ion he
nex ime he same cus ome isi s he s o e. P esen
session-based and andom p oduc ecommenda ions
do no use p e iously acqui ed cus ome da a.
Random p oduc ecommenda ions a e i ems selec ed
by he company, and hey can be o example
campaign p oduc s o he s o e’s mos popula
p oduc s. P esen session-based p oduc
ecommenda ions, on he o he hand, a e
ecommenda ions ha a e ypically shown a e he
on page and hey a e based on he cus ome ’s
cu en shopping isi . These can be p oduc
ecommenda ions shown o a cus ome based on an
i em he cus ome is cu en ly iewing.
Van Doo n and Hoeks a [28] an icipa e ha
in usi eness is in luenced by he deg ee o
pe sonaliza ion, and using only b owsing da a is
conside ed mo e accep able han using ansac ion o
o he pe sonal da a. This s udy is based on p oduc
ecommenda ions ha use only b owsing da a, hus
he deg ee o pe sonaliza ion is de e mined based on
whe he he p oduc ecommenda ion uses his o ical
b owsing da a o no . Some esea ch shows ha
pe sonalized ecommenda ions based on p e ious
pu chases a e pe cei ed as aluable and inc ease
cus ome e en ion [1]. Howe e , as Van Doo n and
Hoeks a [28] ound ha high i be ween a
pe sonalized ad e isemen and a cus ome need
inc eases pu chase in en ions and dec eases he
nega i e e ec pe cei ed in usi eness, i is p oposed
ha pe sonaliza ion ha is based on one’s p esen
b owsing session c ea es a be e i be ween he
ecommenda ion and he need. Simila ly, Li and
colleagues [18] ound ha use ul and in o ma i e
ad e isemen s a e conside ed less i i a ing and
he e o e less likely o be a oided, which is p oposed
o he be case in ecommenda ions based on p esen
a he han pas b owsing session.
E en hough ad e isemen s wi h a high i wi h
cus ome needs p o ide ele an in o ma ion and
he e o e usually inc ease pu chase in en ions, a high
i may also inc ease pe cei ed in usi eness, and
hus, pa icula ly high i can also educe he posi i e
e ec o he i because i e eals o he cus ome ha
pe sonal in o ma ion has been used [28]. On he o he
hand, Ki e z and Simonson [16] show ha cus ome s
pe cei e o e s ha i hei own needs and
p e e ences as mo e aluable han o e s ha i he
needs o o he cus ome s be e . Also, Whi e and
colleagues [30] a gue ha jus i ied p oduc
ecommenda ions inc ease pu chase in en ions, bu i
he ecommenda ions a e no jus i ied, hey may lead
o eac ance. We belie e ha cus ome s pe cei e
p esen session-based p oduc ecommenda ions as
mo e jus i ied han pas session-based p oduc
ecommenda ions because hey a e mo e i ed o hei
cu en need.
Based on hese conside a ions, we p opose ha
p oduc ecommenda ions based on a cus ome ’s
cu en ac i i y ha e a highe i han p oduc
ecommenda ions based on a cus ome ’s pas ac i i y.
Fu he , we assume ha p oduc ecommenda ions
based on a cus ome ’s p e ious ac i i y ha e a highe
i han andomly chosen p oduc ecommenda ions.
We he e o e hypo hesize:
H4: Recommenda ions on he on page
gene a e mo e clicks i hey a e based on he
cus ome ’s pas isi a he han i hey a e
chosen a andom.
H5: Recommenda ions on he la e pages
gene a e mo e clicks i hey a e based on he
cus ome ’s cu en isi a he han pas isi .
4. Me hodology
4.1. Da a
The esea ch da a was collec ed om i e di e en
online s o es anging om June 2015 o June 2016,
and i consis s o a o al o 27,175 ue displays o
p oduc ecommenda ions. Fou o he online s o es
ope a e in Finland, and one in he Uni ed Kingdom.
The ypes o he s o es we e gene al supe ma ke ,
ou doo appa el and clo hing s o e, consume
elec onics s o e, icke agen , and child en’s wea
s o e. The da a was acqui ed om a company ha
p o ides a so wa e o pe sonalize websi es, and he
online s o es included in he analysis we e clien s o
he company.
Ten di e en ypes o p oduc ecommenda ions
we e included in he da a, and hey we e ca ego ized
based on hei message o m (ac i e, passi e), base o
pe sonaliza ion (p esen session, pas session,
andom) and page ( on page, u he pages). The
3863
ac ual p oduc s ha we e ecommended a ied
be ween indi idual use s. Table 1 p esen s he
di e en p oduc ecommenda ions.
4.2. P e- es
A p e- es was conduc ed o in es iga e he
pe cei ed in usi eness o he di e en ypes o
p oduc ecommenda ions. 159 uni e si y s uden s
pa icipa ed in a 3 (base o pe sonaliza ion – p esen
session, pas session, andom) x 2 (message o m –
passi e, ac i e) be ween-subjec s ac o ial
expe imen . Based on a andom selec ion, esponden s
we e sen an online su ey ha included a pic u e o
an online s o e layou and one o he s udied p oduc
ecommenda ion ype. Also, he e was a ex abo e
he pic u e, which in oduced a scena io o a pu pose
o isi he s o e. We used he look and eel o he
hype ma ke ’s online s o e ha was included in he
main s udy and he p oduc s in he ecommenda ions
we e kep cons an ( ablewa e). The ques ionnai e
consis ed o claims ega ding pe cei ed in usi eness
[18], deg ee o in e es , loss o p i acy [4], and
p obabili y o click. A se en-poin Like - ype scale
was used in he ques ionnai e o all o he i ems
anging om “s ongly disag ee” o “s ongly ag ee”.
59% o he esponden s we e male, and a e age
age was 22 yea s. Nei he age no sex explained
a iance o pe cei ed in usi eness. Mean sco e o
pe cei ed in usi eness (measu ed on i ems “This
ad e isemen is o ced”, “…is dis ac ing” and “… is
in usi e”) was 3.67. An ANOVA es e eals ha
bo h base o pe sonaliza ion (F = 6.256, p < .01) and
message o m (F = 3.017, p < .10) had an e ec on
pe cei ed in usi eness, bu no in e ac ion e ec
eme ged (F = .119, p = .888).
The lowes mean sco e appea ed in he
ad e isemen ha ecommended p oduc s based on
he cus ome ’s cu en b owsing session and s a ed in
passi e o m “o he s who iewed his, iewed also”
(M = 2.89, SD = 1.45, N = 28). The highes le el o
in usi eness was pe cei ed in he ad e isemen ha
was based on pas b owsing session and s a ed in
ac i e o m “we ecommend o you” (M = 4.23, SD
= 1.38, N = 27). Figu e 1 p esen s he mean sco es o
he di e en ea men g oups.
Figu e 1. Pe cei ed in usi eness o
pe sonalized ecommenda ions
Nex , esul s o he analysis o he esea ch da a is
p esen ed.
4.3. Resul s
To analyze he e ec o he esea ch a iables on
consume s’ ac ual clicking beha io , we conduc ed
chi-squa e es s and logis ic eg ession analyses.
An analysis on he e ec o ac i e and passi e
message o m on click- h ough a es was conduc ed.
O he o al messages shown on on page, 4,521
we e passi e and 9,149 we e ac i e. 13.5% o he
ecommenda ions wi h ac i e o m on he on page
we e clicked while 14.9% o he ecommenda ions
wi h passi e o m we e clicked. A chi-squa e es
shows a s a is ically signi ican di e ence (X2 =
5,078, p < .05). In addi ion, logis ic eg ession u he
demons a es ha he esul s a e s a is ically
signi ican (B = -.117, Wald = 5,074, p <.05).
O he messages shown a e on page, 9,004 had
a passi e message o m and 4,501 an ac i e message
o m. 29.7% o he p oduc ecommenda ions wi h
passi e message o m shown a e he on page we e
clicked, while 21.9% o he p oduc ecommenda ions
wi h ac i e message o m we e clicked. The
di e ence is s a is ically signi ican based on a chi-
Table 1. Recommenda ions
Recommenda ion
Company
Message
o m
Pe sonaliza ion
base
Page
T ue
displays
Click- h ough
a e %
"A ecommenda ion o you"
Ou doo appa el
Ac i e
Pas
F on page
4090
18,2
"Recommended o you"
Ticke agen
Ac i e
Pas
F on page
443
28,2
"We ecommend also"
Consume elec onics
Ac i e
P esen
Pu chase page
2233
16,7
"Buy also"
Ou doo appa el
Ac i e
P esen
Pu chase page
2268
26,9
"Buy his"
Childe n's wea
Ac i e
Random
F on page
4616
7,9
"The mos iewed"
Hype ma ke
Passi e
Pas
Ca ego y page
2734
4,9
"The mos iewed"
Ou doo appa el
Passi e
Pas
Ca ego y page
1769
34,8
"The mos wan ed igh now"
Ou doo appa el
Passi e
Random
F on page
2429
23
"Picks o Feb ua y"
Hype ma ke
Passi e
Random
F on page
2092
5,6
"O he s who iewed his, also iewed"
Hype ma ke
Passi e
P esen
P oduc page
4501
42,7

3864
squa e di e ence es (X2 = 93,054, p < .000).
Logis ic eg ession was conduc ed o u he alida e
he esul s (B = -.527, Wald = 297,036, p < .05). The
e ec o message o m on clicking beha io is shown
in Figu e 2. The esul s suppo hypo heses 1–3.
Figu e 2. E ec o message o m and page
on click- h ough a e
Nex , an analysis was conduc ed o in es iga e he
e ec base o pe sonaliza ion has on clicking beha io
wi h ega d o p oduc ecommenda ions shown on
he on page. Pas session-based ecommenda ions
on he on page we e displayed 3,662 imes, and
9.2% o he displays we e clicked. Random-based
ecommenda ions on he on page we e displayed
8,097 imes, and 11.4% o hem we e clicked. A chi-
squa e es shows ha he e was a s a is ically
signi ican di e ence be ween pas session and
andom ecommenda ions on he on page (X2 =
154,565, p < .000). Thus, i can be concluded ha pas
session-based ecommenda ions a e mo e e ec i e in
gene a ing clicks han andom p oduc
ecommenda ions. Logis ic eg ession u he
demons a ed ha he e ec o pe sonaliza ion base
on clicking in en ions is s a is ically signi ican (B = -
0.616, Wald = 151,479, p < 0.05). Thus, H4 is
suppo ed.
A simila analysis was conduc ed wi h p oduc
ecommenda ions shown a e he on page,
including ca ego y, p oduc and pu chase pages. A
o al o 13,505 p oduc ecommenda ions on pages
o he han he on page we e iewed by cus ome s
o he online s o es. O he ecommenda ions based
on p esen session (N = 9,002), 32.3% gene a ed
clicks while 16.7% o messages based on pas session
(N = 4,503) gene a ed clicks. A chi-squa e es shows
ha he e was also a s a is ically signi ican di e ence
be ween p esen and pas session-based
ecommenda ions on pages o he han he on page
(X2 = 371,693, p < .000). The esul indica es ha
p esen session-based p oduc ecommenda ions
gene a e mo e clicks han pas session-based
ecommenda ions on ca ego y, p oduc and pu chase
pages. Logis ic eg ession was conduc ed o u he
alida e he indings (B = -0.672, Wald = 1155,914, p
<.05). Thus, H5 is also suppo ed.
5. Discussion
5.1. Theo e ical implica ions
The esul s o he p e- es indica e ha cus ome s
pe cei e p oduc ecommenda ions ha a e based on
in o ma ion abou hei pas b owsing session as mo e
in usi e han ecommenda ions ha a e based hei
cu en b owsing ac i i y. The esul suppo s p io
esea ch on p i acy and in usi eness o online
ad e ising [e.g., 12, 27, 28] – using cus ome
in o ma ion ha could no ha e been known based on
he p esen session’s b owsing ac i i y, is hough o
iola e ones p i acy. The esul s also suppo p io
esea ch ha has shown ha cus ome s eac
nega i ely o explici use o da a [4, 29]. In addi ion,
he esul s illus a e ha cus ome s a e mo e in e es ed
in p oduc ecommenda ions ha a e based on hei
p esen shopping p ocess. The explana ion o his is,
mos p obably, ha p oduc ecommenda ions ha a e
based on he cu en shopping ac i i y o a cus ome
ha e a highe i wi h he cus ome ’s cu en need.
This suppo s he no ion o Whi e and colleagues [30]
ha he be e jus i ied a pe sonalized message is, he
mo e likely consume s a e o espond posi i ely o i .
The esul s o also highligh ha a high deg ee o
pe sonaliza ion does no necessa ily esul in
inc eased click- h ough a es. The esea ch o Whi e
and colleagues [30] and Van Doo n and Hoeks a [28]
a gue ha in usi eness esul s in lowe pu chase
in en ions. The esul s o he p esen s udy indica e
ha ecommenda ions wi h a passi e o m gene a e
mo e clicks han ecommenda ions wi h an ac i e
message o m. This applies o all s ages o a
cus ome ’s buying p ocess. The explana ion could be
ha cus ome s pe cei e p oduc ecommenda ions
wi h an ac i e message o m as mo e in usi e and
o ced, esul ing in eac ance due o pe cei ed loss o
eedom. Mo eo e , p oduc ecommenda ions wi h
passi e message o m may be pe cei ed as
unin en ionally pe sonalized o cus ome s. The
a gumen o Sela and colleagues [24], which poin s
ou ha cus ome s eac posi i ely o
ecommenda ions ha a e unin en ionally aluable o
hem, may be applied he e. Thus, cus ome s may eel
ha passi e messages a e no o ced, and ind hem
mo e in e es ing, pa icula ly i hey i hei needs
and p e e ences.
The analysis o message o m and message base
was di ided in o wo ca ego ies based on he page he
p oduc ecommenda ion was placed a . The esul
shows ha p oduc ecommenda ions on he on
page gene a ed less clicks han p oduc
ecommenda ions on u he pages, p obably because
consume s a e mo e open o selle ’s ecommenda ions
a e hey ha e ul illed hei i s immedia e need o
isi he pa icula s o e.
The dis inc ion o page ca ego ies enables he
possibili y o compa e he e ec i eness o p oduc
ecommenda ions wi h di e en kinds o
3865
pe sonaliza ion bases. Acco ding o he analysis, pas
session-based p oduc ecommenda ions gene a e
mo e clicks on he on page han andomly chosen
p oduc ecommenda ions. Howe e , on pages a e
he on page, p oduc ecommenda ions based on he
p esen session gene a e mo e clicks and pu chases
han ecommenda ions based on a use ’s p e ious
isi s. I can be concluded ha p esen session-based
in o ma ion is mo e ele an han pas session-based
in o ma ion. The indings o an Doo n and Hoeks a
[28] s a e ha a high deg ee o pe sonaliza ion
inc eases pu chase in en ions e en hough i also
inc eases in usi eness. Howe e , he esul s o his
s udy imply ha a high deg ee o pe sonaliza ion
inc eases in usi eness and lowe s he e ec i eness
o he ecommenda ion. Thus, he mos ecen
cus ome beha io da a and passi e message o m a e
mos posi i ely esponded by cus ome s.
5.2. Manage ial implica ions
The esul s p o ide ools o companies o use
when designing hei online pe sonaliza ion
s a egies. E-comme ce companies using
ecommende sys ems should ake in o conside a ion
he deg ee o pe sonaliza ion hey a e applying in hei
ad e isemen s and o he con en . Mo e speci ically,
manage s should conside he message o m and
pe sonaliza ion base o p oduc ecommenda ions.
They should also emembe ha he page and s age o
he buying p ocess may a ec he ype o p oduc
ecommenda ion ha should be used. In gene al,
p oduc ecommenda ions in he la e phases o he
shopping p ocess gene a e mo e clicks han
ecommenda ions on he on page.
This esea ch implies ha p oduc
ecommenda ions wi h a passi e message o m a e
mo e e ec i e han ecommenda ions wi h ac i e
message o m in all phases o he buying p ocess.
Thus, online s o es should implemen p oduc
ecommenda ions ha do no imply he amoun o
in o ma ion known abou cus ome s. Gene alized
lines such as “ he mos popula ” a e e ec i e o ms
o a ge ing cus ome s wi h pe sonaliza ion wi hou
c ea ing eac ance – e en i he ecommenda ion
would be based on known cus ome in o ma ion.
E-comme ce companies should also conside he
message base hey use in making he
ecommenda ions. Based on his s udy, companies
should use he mos ecen in o ma ion hey ha e on
hei cus ome s. Thus, in o ma ion ha has been
acqui ed du ing pas isi s should be used on he on
page in o de o inc ease click- h ough a es.
Howe e , a e he on page, such as ca ego y,
p oduc and pu chase pages, i is he mos e ec i e o
use in o ma ion ha is based on he cu en shopping
session o he cus ome . Thus, p oduc
ecommenda ions on u he pages should e lec he
choices and p e e ences he cus ome has implied on
he cu en isi ins ead o pas isi s. This kind o
pe sonaliza ion is also app ecia ed by he cus ome s.
5.3. Limi a ions
The da a was acqui ed om a company ha
p o ides a pe sonaliza ion so wa e o i s clien s.
Thus, he da a is limi ed o ce ain ypes o online
s o es and o ce ain ypes o p oduc
ecommenda ions – he e a e many o he kinds o
ecommenda ions ha could ha e di e en kind o
e ec . Mo eo e , cus ome s’ clicking and buying
beha io may di e be ween he s o es as he sold
p oduc s and he designs o he s o es a e di e en .
Addi ionally, he p oduc s sold a y in e ms o p ice,
which migh a ec he e ec i eness o he
ecommenda ion. Howe e , he a iance in p oduc s,
s o es and p ices can also be conside ed a s eng h as
he esul s p o ide be e gene alizabili y. In ega ds
o he esea ch design, u u e esea ch should con ol
he exposu e o ecommenda ions based on p esen
and pas beha io and he eby ule ou he sel -
selec ion bias ha a ec s he esul s o his s udy.
A scena io-based p e- es was conduc ed wi h
pa icipan s ha we e shown sc eensho s o possible
p oduc ecommenda ions. Unde ideal
ci cums ances, he same ques ions would ha e been
posed o eal cus ome s du ing hei shopping
expe ience, and all he di e en ecommenda ion
ypes would ha e been conside ed. Howe e , as he
esea che s had no con ol o e he decisions o he
companies o had any con ac in o ma ion o o he
ouchpoin o he cus ome s, such p ocedu e was no
possible. In addi ion, no online s o e ha would ha e
used all he di e en ypes o p oduc
ecommenda ions could no be included in he s udy.
The e o e, he compa ed ecommenda ions a e
subjec o a numbe o uncon olled a iables. This
limi a ion was alle ia ed by ca ego izing he analyzed
ecommenda ions as objec i ely as possible.
6. Conclusion
Online pe sonaliza ion has become a i al
ma ke ing and sales ool o e-comme ce companies.
P oduc ecommende sys ems, which apply
consume da a in making ecommenda ions, a e a
common ool o e-comme ce companies. The e ec s
o p i acy issues and pe cei ed in usi eness ha e
been s udied in he ad e ising li e a u e bu esea ch
on he e ec o online pe sonaliza ion on ac ual
clicking beha io is limi ed. Thus, he aim o his
s udy was o ill his esea ch gap by u ilizing
clicks eam da a om i e di e en online s o es. The
esul s sugges ha pe sonalized p oduc
ecommenda ions ha a e based on cus ome ’s
p e ious b owsing session inc ease pe cei ed
in usi eness and dec ease click- h ough a e. The
analysis implies ha p oduc ecommenda ions
gene a e he mos clicks when hey a e based on he
3866
mos ecen in o ma ion acqui ed o he cus ome . In
addi ion, he esul s sugges ha p oduc
ecommenda ions wi h passi e message o m
gene a e highe click- h ough a es han ac i e
message o m, which sugges he need o mi iga e he
pe cep ion o in usi eness.
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