Management Science · 2010 · 133 citations · 44 references
BusinessInformation SystemsInformation TechnologyConsumer BehaviorE-commerce SystemsRecommender SystemsBusiness-to-consumer E-commerceConsumer SearchInformation SearchOnline Consumer BehaviorSearch Log AnalysisSearch SystemsConsumer Information SearchConsumer Purchasing BehaviorConsumer Technology AdoptionLog Data AnalysisOnline Consumer SalesRecommendation System EffectsSales Data CaptureServer Log Analysis
Despite the widespread adoption of search and recommendation technologies on the Internet, empirical research that examines the effect of these technologies is scarce. How do online consumers use these technologies? Does consumers' technology usage have an effect on the sales to them or their purchasing patterns? This paper empirically measures consumers' usage of website technologies by analyzing server log data. We match technology usage data to sales data, controlling for consumers' historical purchasing behavior. Our unique data set allows us to reveal the relationship between technology usage and online sales. Our analyses show that consumers' information technology usage has a significant effect on the sales to them, but this effect varies for different technologies and across different products. In particular, the use of directed search has a positive effect on the sales of promoted products, whereas it has a negative effect on the sales of nonpromoted products. In contrast, the use of a recommendation system has a positive effect on the sales of both promoted and nonpromoted products. Surprisingly, the use of nondirected search has an insignificant effect on online sales.
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Sample Selection Bias as a Specification Error
James J. Heckman · Econometrica · 1979 · 28.9K citations
A BEHAVIORAL MODEL OF RATIONAL CHOICE
Herbert A. Simon · The Quarterly Journal of Economics · 1955 · 15.3K citations