IDEAS home Printed from https://ideas.repec.org/a/spr/custns/v7y2020i3d10.1007_s40547-020-00107-4.html
   My bibliography  Save this article

Technology-Augmented Choice: How Digital Innovations Are Transforming Consumer Decision Processes

Author

Listed:
  • Shiri Melumad

    (University of Pennsylvania)

  • Rhonda Hadi

    (University of Oxford)

  • Christian Hildebrand

    (University of St. Gallen)

  • Adrian F. Ward

    (University of Texas at Austin)

Abstract

This paper provides an overview of recent research that explores how digital technologies such as mobile devices, wearables, voice technology, and recommendation agents are transforming consumer decision-making. We advance a conceptual model of technology-augmented choice that describes how the three Ms of technology—mediums (i.e., device types), modalities (i.e., interaction interfaces), and modifiers (i.e., intelligent agents)—are becoming increasingly integral elements of consumer decision processes. For instance, today’s new technologies often help curate consideration sets, shape how options are evaluated, and even guide choices themselves. As a result, market choices must now be viewed as a joint function of both consumer preferences and the characteristics of the technological environment in which those preferences are expressed. Examples of empirical research are reviewed that characterize the interdependencies between technology and decision-making, including how smartphones transform user-generated content, voice technology affects consumer search, haptic interfaces shape product preferences, and search engines alter confidence in choice.

Suggested Citation

  • Shiri Melumad & Rhonda Hadi & Christian Hildebrand & Adrian F. Ward, 2020. "Technology-Augmented Choice: How Digital Innovations Are Transforming Consumer Decision Processes," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 7(3), pages 90-101, October.
    • Handle: RePEc:spr:custns:v:7:y:2020:i:3:d:10.1007_s40547-020-00107-4
    DOI: 10.1007/s40547-020-00107-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40547-020-00107-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40547-020-00107-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sam Ransbotham & Nicholas H. Lurie & Hongju Liu, 2019. "Creation and Consumption of Mobile Word of Mouth: How Are Mobile Reviews Different?," Marketing Science, INFORMS, vol. 38(5), pages 773-792, September.
    2. repec:cup:judgdm:v:9:y:2014:i:2:p:167-175 is not listed on IDEAS
    3. Burke, Raymond R, et al, 1992. "Comparing Dynamic Consumer Choice in Real and Computer-Simulated Environments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(1), pages 71-82, June.
    4. Jie Xu & Min Ding, 2019. "Using the Double Transparency of Autonomous Vehicles to Increase Fairness and Social Welfare," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 6(1), pages 26-35, June.
    5. Logg, Jennifer M. & Minson, Julia A. & Moore, Don A., 2019. "Algorithm appreciation: People prefer algorithmic to human judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 90-103.
    6. Goodwin, Paul & Sinan Gönül, M. & Önkal, Dilek, 2013. "Antecedents and effects of trust in forecasting advice," International Journal of Forecasting, Elsevier, vol. 29(2), pages 354-366.
    7. John G. Lynch , Jr. & Dan Ariely, 2000. "Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution," Marketing Science, INFORMS, vol. 19(1), pages 83-103, April.
    8. Bettman, James R & Luce, Mary Frances & Payne, John W, 1998. "Constructive Consumer Choice Processes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(3), pages 187-217, December.
    9. Adrian F. Ward & Kristen Duke & Ayelet Gneezy & Maarten W. Bos, 2017. "Brain Drain: The Mere Presence of One’s Own Smartphone Reduces Available Cognitive Capacity," Journal of the Association for Consumer Research, University of Chicago Press, vol. 2(2), pages 140-154.
    10. Erik Brynjolfsson & Kristina McElheran, 2016. "The Rapid Adoption of Data-Driven Decision-Making," American Economic Review, American Economic Association, vol. 106(5), pages 133-139, May.
    11. Jordan Etkin, 2016. "The Hidden Cost of Personal Quantification," Journal of Consumer Research, Oxford University Press, vol. 42(6), pages 967-984.
    12. Donna L Hoffman & Thomas P Novak & Eileen FischerEditor & Robert KozinetsAssociate Editor, 2018. "Consumer and Object Experience in the Internet of Things: An Assemblage Theory Approach," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(6), pages 1178-1204.
    13. Hildebrand, Christian & Efthymiou, Fotis & Busquet, Francesc & Hampton, William H. & Hoffman, Donna L. & Novak, Thomas P., 2020. "Voice analytics in business research: Conceptual foundations, acoustic feature extraction, and applications," Journal of Business Research, Elsevier, vol. 121(C), pages 364-374.
    14. Mulcahy, Rory Francis & Riedel, Aimee S., 2020. "‘Touch it, swipe it, shake it’: Does the emergence of haptic touch in mobile retailing advertising improve its effectiveness?," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    15. Cassie Mogilner & Jennifer Aaker & Sepandar D. Kamvar, 2012. "How Happiness Affects Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(2), pages 429-443.
    16. Cowan, Ruth Schwartz, 1997. "A Social History of American Technology," OUP Catalogue, Oxford University Press, number 9780195046052.
    17. Andrew Prahl & Lyn Van Swol, 2017. "Understanding algorithm aversion: When is advice from automation discounted?," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 36(6), pages 691-702, September.
    18. Oliver Rutz & Randolph Bucklin, 2012. "Does banner advertising affect browsing for brands? clickstream choice model says yes, for some," Quantitative Marketing and Economics (QME), Springer, vol. 10(2), pages 231-257, June.
    19. Robert Meyer & Kenneth Broad & Ben Orlove & Nada Petrovic, 2013. "Dynamic Simulation as an Approach to Understanding Hurricane Risk Response: Insights from the Stormview Lab," Risk Analysis, John Wiley & Sons, vol. 33(8), pages 1532-1552, August.
    20. Kahn, Barbara E & Isen, Alice M, 1993. "The Influence of Positive Affect on Variety Seeking among Safe, Enjoyable Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(2), pages 257-270, September.
    21. Amos Tversky & Itamar Simonson, 1993. "Context-Dependent Preferences," Management Science, INFORMS, vol. 39(10), pages 1179-1189, October.
    22. Gerald Häubl & Valerie Trifts, 2000. "Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids," Marketing Science, INFORMS, vol. 19(1), pages 4-21, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christian Hildebrand & Anouk Bergner, 2021. "Conversational robo advisors as surrogates of trust: onboarding experience, firm perception, and consumer financial decision making," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 659-676, July.
    2. Hildebrand, Christian & Efthymiou, Fotis & Busquet, Francesc & Hampton, William H. & Hoffman, Donna L. & Novak, Thomas P., 2020. "Voice analytics in business research: Conceptual foundations, acoustic feature extraction, and applications," Journal of Business Research, Elsevier, vol. 121(C), pages 364-374.
    3. Kim, Jungkeun & Kim, Jeong Hyun & Kim, Changju & Park, Jooyoung, 2023. "Decisions with ChatGPT: Reexamining choice overload in ChatGPT recommendations," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shiri Melumad & Rhonda Hadi & Christian Hildebrand & Adrian F. Ward, 2021. "Technology-Augmented Choice: How Digital Innovations Are Transforming Consumer Decision Processes," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 7(3), pages 90-101, October.
    2. Volkmar, Gioia & Fischer, Peter M. & Reinecke, Sven, 2022. "Artificial Intelligence and Machine Learning: Exploring drivers, barriers, and future developments in marketing management," Journal of Business Research, Elsevier, vol. 149(C), pages 599-614.
    3. Mahmud, Hasan & Islam, A.K.M. Najmul & Ahmed, Syed Ishtiaque & Smolander, Kari, 2022. "What influences algorithmic decision-making? A systematic literature review on algorithm aversion," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Peter J. Danaher & Isaac W. Wilson & Robert A. Davis, 2003. "A Comparison of Online and Offline Consumer Brand Loyalty," Marketing Science, INFORMS, vol. 22(4), pages 461-476, February.
    5. Petropoulos, Fotios & Apiletti, Daniele & Assimakopoulos, Vassilios & Babai, Mohamed Zied & Barrow, Devon K. & Ben Taieb, Souhaib & Bergmeir, Christoph & Bessa, Ricardo J. & Bijak, Jakub & Boylan, Joh, 2022. "Forecasting: theory and practice," International Journal of Forecasting, Elsevier, vol. 38(3), pages 705-871.
      • Fotios Petropoulos & Daniele Apiletti & Vassilios Assimakopoulos & Mohamed Zied Babai & Devon K. Barrow & Souhaib Ben Taieb & Christoph Bergmeir & Ricardo J. Bessa & Jakub Bijak & John E. Boylan & Jet, 2020. "Forecasting: theory and practice," Papers 2012.03854, arXiv.org, revised Jan 2022.
    6. Alan L. Montgomery & Kartik Hosanagar & Ramayya Krishnan & Karen B. Clay, 2004. "Designing a Better Shopbot," Management Science, INFORMS, vol. 50(2), pages 189-206, February.
    7. Pascal Oliver Heßler & Jella Pfeiffer & Sebastian Hafenbrädl, 2022. "When Self-Humanization Leads to Algorithm Aversion," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(3), pages 275-292, June.
    8. Lourenço, Carlos J.S. & Dellaert, Benedict G.C. & Donkers, Bas, 2020. "Whose Algorithm Says So: The Relationships Between Type of Firm, Perceptions of Trust and Expertise, and the Acceptance of Financial Robo-Advice," Journal of Interactive Marketing, Elsevier, vol. 49(C), pages 107-124.
    9. Tianshi Li & Wenli Li & Yuqing Zhao & Jingpei Ma, 2023. "Rationality manipulation during consumer decision-making process: an analysis of Alibaba’s online shopping carnival," Electronic Commerce Research, Springer, vol. 23(1), pages 331-364, March.
    10. Punj, Girish & Moore, Robert, 2009. "Information search and consideration set formation in a web-based store environment," Journal of Business Research, Elsevier, vol. 62(6), pages 644-650, June.
    11. Naveen C. Amblee, 2014. "Analysis Of The Impact Of Online Product Reviews On Temporal And Cognitive Search Costs: An Eye-Tracking Approach," Working papers 157, Indian Institute of Management Kozhikode.
    12. Köcher, Sören & Jugovac, Michael & Jannach, Dietmar & Holzmüller, Hartmut H., 2019. "New Hidden Persuaders: An Investigation of Attribute-Level Anchoring Effects of Product Recommendations," Journal of Retailing, Elsevier, vol. 95(1), pages 24-41.
    13. Yongping Bao & Ludwig Danwitz & Fabian Dvorak & Sebastian Fehrler & Lars Hornuf & Hsuan Yu Lin & Bettina von Helversen, 2022. "Similarity and Consistency in Algorithm-Guided Exploration," CESifo Working Paper Series 10188, CESifo.
    14. Gavan J. Fitzsimons & Donald R. Lehmann, 2004. "Reactance to Recommendations: When Unsolicited Advice Yields Contrary Responses," Marketing Science, INFORMS, vol. 23(1), pages 82-94, September.
    15. Markus Jung & Mischa Seiter, 2021. "Towards a better understanding on mitigating algorithm aversion in forecasting: an experimental study," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(4), pages 495-516, December.
    16. Lijia Shi & Lisa A. House & Zhifeng Gao, 2013. "Impact of Purchase Intentions on Full and Partial Bids in BDM Auctions: Willingness-to-pay for Organic and Local Blueberries," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 707-718, September.
    17. Mark Heitmann & Andreas Herrmann, 2007. "Die Zufriedenheit mit dem Entscheidungsprozess als Determinante der Kundenbindung," Schmalenbach Journal of Business Research, Springer, vol. 59(5), pages 530-566, August.
    18. Merle, Aurélie & St-Onge, Anik & Sénécal, Sylvain, 2022. "Does it pay to be honest? The effect of retailer-provided negative feedback on consumers’ product choice and shopping experience," Journal of Business Research, Elsevier, vol. 147(C), pages 532-543.
    19. Wu, Pei-Hsun & Kao, Danny Tengti, 2011. "Goal orientation and variety seeking behavior: The role of decision task," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 65-72, February.
    20. Shao, Wei & Lye, Ashley & Rundle-Thiele, Sharyn, 2009. "Different strokes for different folks: A method to accommodate decision -making heterogeneity," Journal of Retailing and Consumer Services, Elsevier, vol. 16(6), pages 495-501.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:custns:v:7:y:2020:i:3:d:10.1007_s40547-020-00107-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.