Personalized Product Recommendations: Evidence from the Field

Essi Pöyry, Ninni Hietaniemi, Petri Parvinen, Juho Hamari, Maurits Kaptein

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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Abstract

Targeting personalized product recommendations to individual customers has become a mainstream activity in online stores as it has been shown to increase click-through rate and sales. However, as personalization becomes increasingly commonplace, customers may feel personalized content intrusive and therefore not responding or even avoiding them. Many studies have investigated advertising intrusiveness and avoidance but a research gap on the effect of degree of personalization on customer responses based on field evidence exists. In this paper, 27,175 recommendation displays from five different online stores are analyzed. The results show that the further the customer is in the purchasing process, the more effective personalization is if it is based on information about the present rather than past browsing session. Moreover, recommendations in passive form are more effective than recommendations in active form suggesting the need to dispel the perception of intrusiveness.
Original languageEnglish
Title of host publicationProceedings of the 50th Hawaii International Conference on System Sciences
ISBN (Electronic)978-0-9981331-0-2
DOIs
Publication statusPublished - 2017
MoE publication typeA4 Article in a conference publication
EventAnnual Hawaii International Conference on System Sciences - Waikoloa Village, United States
Duration: 4 Jan 20177 Jan 2017
Conference number: 50
http://hicss.hawaii.edu/

Conference

ConferenceAnnual Hawaii International Conference on System Sciences
Abbreviated titleHICSS
Country/TerritoryUnited States
CityWaikoloa Village
Period04/01/201707/01/2017
Internet address

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