Preference stability belief as a determinant of response to personalized recommendations

Abstract

Abstract Preference stability refers to the objectively measured choice consistency among options with different attribute values in the same product category. We suggest that a consumer's subjectively held belief of preference stability may be an important determinant of response to personalized recommendations. Experimental results confirm that preference stability belief moderates the effect of customization on the evaluation of recommendation accuracy and receptiveness to the learning relationship. Customization will produce stronger effects on accuracy evaluation and receptiveness for subjects with high preference stability belief than for subjects with low preference stability belief. Customers who believe their preferences are stable appreciate customized recommendations more, notice more acutely whether recommendations are customized or not, and are more receptive to the learning relationship when recommendations are customized than when not. Customers who believe their own preferences are less stable do not appreciate customized recommendations as much, are less sensitive to whether recommendations are customized or not, and are not more receptive to the learning relationship even when recommendations are customized. Theoretical and managerial implications of our findings are discussed. Copyright © 2011 John Wiley & Sons, Ltd.