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Influencing Consumer Decisions Through Personalization.

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Abstract and Figures

Web-based technologies have enabled companies to reach out to their customers and influence decision making in new and different ways. Personalization has shown promise as an approach to attracting an individual's interest and influencing their decision making, and it can be effectively delivered over the Internet. New technologies allow a rich mix of media, interconnected streams of social conversation between users, and one-on-one interaction between the user and the technology delivering the message. These characteristics can be used to influence a decision maker based on research suggesting that consumers will respond more favorably to individualized messages than generalized ones. This paper focuses on socio-technical aspects of personalization by addressing human and technical issues in the implementation and impact of personalization. We provide a Understand-Measure-Deliver theory of personalization and report a case study of a global company that successfully used personalization to influence consumer decisions in the tourism industry. The findings are that customization based on relevant data provides a personalized experience; customers become product designers and product testers with Web 2.0 technologies; and interaction between a human and the technology amplifies user experience.
Content may be subject to copyright.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Influencing Consumer Decisions Through
Personalization
Gloria PHILLIPS-WRENa,
1
and Jeffrey WYGANT b
a Loyola University Maryland, Baltimore, MD USA
b Euro RSCG Discovery, Baltimore, MD USA
Abstract. Web-based technologies have enabled companies to reach out to their
customers and influence decision making in new and different ways.
Personalization has shown promise as an approach to attracting an individual’s
interest and influencing their decision making, and it can be effectively delivered
over the Internet. New technologies allow a rich mix of media, interconnected
streams of social conversation between users, and one-on-one interaction between
the user and the technology delivering the message. These characteristics can be
used to influence a decision maker based on research suggesting that consumers
will respond more favorably to individualized messages than generalized ones.
This paper focuses on socio-technical aspects of personalization by addressing
human and technical issues in the implementation and impact of personalization.
We provide a Understand-Measure-Deliver theory of personalization and report a
case study of a global company that successfully used personalization to influence
consumer decisions in the tourism industry. The findings are that customization
based on relevant data provides a personalized experience; customers become
product designers and product testers with Web 2.0 technologies; and interaction
between a human and the technology amplifies user experience.
Keywords. Personalization, decision making, socio-technical, Web 2.0
Introduction
Web-based technologies have enabled companies to reach out to their customers and
influence decision making in new and different ways. Personalization has shown
promise as an approach to attracting an individual’s interest and retaining their
attention, and it can be effectively delivered over the Internet (Mussi, 2003; Kennedy,
2008). Personalization is the process of obtaining data about individual consumers,
converting that data into actionable information and knowledge, and then into wisdom
by matching characteristics of the product with knowledge about the individual
(Kennedy, 2008). It can range from highly individualized approaches based on detailed
information about an individual, to more generalized group preferences based on
clustering methods, with the approach dependent on the fidelity of the available
information and the flexibility of the delivery system (Picariello and Sansone, 2008).
Web 2.0 offers technologies that allow a rich mix of media, interconnected streams of
social conversation between users, and one-on-one interaction between the user and the
technology delivering the message. These characteristics can be used to influence a
1
Corresponding Author. Sellinger School of Business and Management, Loyola University Maryland,
4501 N. Charles Street, Baltimore, MD 21210 USA; 410-617-5470; gwren@loyola.edu
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
decision maker based on research suggesting that consumers will respond more
favorably to individualized messages than generalized ones (Tam and Ho, 2006).
Socio-technical issues in this context involve obtaining information from users that can
be used for personalization, identifying relationships between technology factors such
as presentation style and content for a particular decision maker, and developing a
system that can be maintained by content providers who may not be technically
specialized.
A number of studies have reported that personalization delivered over the Web can
influence a decision maker (see, for example, Tam and Ho, 2006; Kennedy, 2008).
However, there appears to be a gap in research on socio-technical aspects of
personalization. Mackrell, Kerr and von Hellens (2009) summarized recent
perspectives on decision support systems (DSS) research by stating that the relevance
of DSS research would improve by increasing the number of case studies, especially
interpretive case studies to help reduce the gap between research and practice … [and]
the academic rigour of DSS research would improve by broadening the reference
theory foundation from its extant narrow base to consider perspectives ‘beyond the
technical’” (p. 143). This paper responds to the call for relevant case studies that
demonstrate application of decision making theories in actual implementations.
We focus on clients and users by addressing human and technical issues in the
implementation and the impact of personalization. We report a case study of a global
company that successfully used personalization in their website marketing efforts to
influence consumer decisions. Our goal is to learn from the case rather than attempting
to generalize the analysis, referred to by Adam, Doyle and Sammon (2008) as an
intrinsic case study. We first review the literature on personalization in section 2. In
sections 3 and 4 we discuss our research design and describe the company’s
personalization efforts. We then discuss observations and conclusions related to socio-
technical issues arising from the case in the final sections of the paper.
1. Personalization Process and Effect on Decision Making
1.1. Personalization Process
Personalization “tailors certain offerings (such as content, services, product
recommendations, communications, and e-commerce interactions) by providers (such
as e-commerce Web sites) to consumers (such as customers and visitors) based on
knowledge about them, with certain goal(s) in mind” (Adomavicius and Tuzhilin,
2005). These techniques are information intensive and require a fast response to the
consumer within the context of the decision problem to capitalize on the initial interest
and attention of the person.
Personalization is an iterative process that has three theoretical stages in the
understand-deliver-measure cycle (Adomavicius and Tuzhilin, 2005). In the first phase
the provider attempts to understand consumers by collecting as much information about
them as possible and synthesizing it to produce knowledge that can be acted upon. The
second step is to deliver personalized messages or offerings based on a deep
understanding of the consumer. The third step is to measure the impact in order to
identify deficiencies and provide feedback for improvements. When one cycle is
complete, another cycle can begin with improved personalization techniques.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Figure 1. Personalization Process Model
(based on Adomavicius and Tuzhilin, 2005).
1.2 Effect on Decision Making
Research suggests that delivering personalized content with the Web can influence a
user’s decision making (Tam and Ho, 2006). The reason for an enhanced response to
individualized messages continues to be an area of debate. Kuiper and Rogers (1979)
proposed the idea of “the self [as] an important agent in the processing of personal
information … [serving] as an abstract cognitive structure that contains both general
traitlike entries and some specific behavioral exemplars or instances. This memory
structure is active during the input and interpretation of self-related information and
provides a degree of ‘meaning’ or embellishment to the incoming information. The self
can be seen to act as a hook or interpretative frame for the encoding of personal data”
(p. 511).
Kircher et al. (2000, 2002) used functional Magnetic Resonance Imaging to
investigate cerebral activation while subjects processed faces and trait words related to
their self and to non-self. The results suggested that there was a reaction time
advantage in self processing, and that there were both common and differentiated brain
areas involved in the two processing conditions. The differentiated areas were in areas
previously correlated with awareness of one’s self.
Tam and Ho (2006) focused on the effectiveness of Web personalization with two
mediating factors: self-reference and content relevance. Self-referent stimuli “were
found to attract more attention, enable users to create preference structures faster, and
bias the decision outcome(p. 885). Content relevance was consistent with previous
research that shows that users recall content that is relevant to their goal, and there is an
interaction effect between personalization and content relevance. Perhaps surprising,
they found an insignificant impact of self-referent content on recall, implying that
decision makers did not recall personalized content better than generalized content.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
The suggestion is that web developers and marketers should consider the intended role
of personalization, recall versus decision influencer, in their strategy.
2. Research Design
Over a period of five years we carried out a case study of a large global marketing
company that implemented Web personalization as a means of achieving quantifiable
impact on consumer decision making. We carried out multiple interviews with
managers involved in the project, observed users interacting with the technology,
documented modifications to the system as a result of user input, and used publically
available documents to give an in-depth look at the socio-technical issues involved in
personalization approaches. Although there are a number of studies addressing the
concept and theory of personalization in Web-enabled applications, we found little
research on the human factors involved in developing, maintaining and using these
techniques. We will refer to these factors as socio-technical in nature.
This research is primarily descriptive, and the case study is exploratory. Following
Yin (1989) and Stake (1995), we developed an initial framework for the study and
focused on the case specifically to maximize learning about the human and technical
considerations for personalization in a Web-enabled application rather than
determining the typicality of the case.
3. Euro RSCG Discovery
Euro RSCG Worldwide is a global integrated marketing company specializing in
advertising, digital, marketing services, healthcare, PR and corporate communications.
It has offices in 75 countries with 233 offices around the world (Euro RSCG, 2009).
Euro RSCG Discovery is the associated analytics, customer relationship management,
and behavioral marketing agency network. The agency combines research in
behavioral, attitudinal and lifestyle data to develop actionable insights that help clients
build loyalty, increase share, and create personal connections to their brands. Clients
include large multi-national companies including Diageo, IBM, Liberty Mutual
Insurance, Sprint and Volkswagen. The agency has offices in Chicago, Illinois;
Baltimore, Maryland; Mineola, New York; Richmond, Virginia; and Wilton,
Connecticut.
Euro RSCG Discovery was hired by the Bermuda Department of Tourism (BDOT)
to reverse a significant decline in the island’s travel and tourism industry. The island
of Bermuda, which had once welcomed royalty and presidents, had been facing a 10-
year decline in their tourism industry due to increased price competition from other
destinations and the island’s growing reputation as a destination that was solely for
honeymooners and elderly vacationers. As a result, the Bermuda Department of
Tourism hired Euro RSCG Discovery to increase call volume to 1-800-BERMUDA,
boost web traffic, and increase prospect conversion.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Before working with Euro RSCG Discovery, BDOT’s marketing efforts consisted
of general awareness advertising and a generic inquiry fulfillment direct mail package.
The same promotional materials were sent to every prospect, regardless of their reasons
for visiting the island, the seasonality of their visit, or the gateway city from which they
were traveling. The travel market is highly competitive, and the customer is faced with
many choices and multiple sources of information. In such markets, differentiation
techniques were needed to make BDOT products attractive to consumers.
3.1 The Business Case Leveraging Under-Utilized Assets
Euro RSCG Discovery implemented a consumer personalization strategy that was data-
driven and referred to as a Dynamic Marketing Environment (DME). Although the
DME required significant upfront development costs, it helped BDOT leverage two
valuable and under-used marketing assets: 1) a responder database, which was
comprised of potential visitors who had called 1-800-BERMUDA or visited
bermudatourism.com; and 2) a visitor database, which they had compiled from
completed immigration cards. These two target audiences received dynamically
generated, personalized communications that spoke to each prospect’s specific vacation
needs, aspirations, and purchase histories. This shift in communication strategy would
ultimately offer three critical advantages for BDOT:
It would allow BDOT to create personalized content and relevant offers for each
potential visitor. This allowed Bermuda to set itself apart from competing islands
by presenting each prospect with a uniquely personal Bermuda vacation offering.
It would enable BDOT to convert a higher percentage of prospects into visitors by
engaging them in a structured and personalized conversion program. Previously,
these leads, which were acquired through costly television campaigns, received
only one piece of communication. Prospects who didn’t visit the island were
simply abandoned.
It would build repeat visitation and greater lifetime value for each customer by
enabling BDOT to communicate with each past visitor in a personal context.
3.2 Implementation: Bermuda’s Dynamic Marketing Environment (DME)
3.2.1 First Step in Personalization Process: ‘Understand’
The first step in a personalization process as shown in Figure 1 is to Understand the
customer. The DME process began with lead generation from a variety of sources (see
Figure 2) to ensure relevance which was identified as a mediating factor (Tam and Ho,
2006). These leads were filtered and focused into a database that were analyzed and
mined to produce highly granular information for potential visitors to Bermuda.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Figure 2. Process flow diagram for the Dynamic Marketing Environment.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Figure 3. Sample Web presence for the Figure 3. Sample Web presence for t
Figure 3. Sample web presence for the Dynamic Marketing Environment.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
3.2.2 Second Step in Personalization Process: ‘Deliver’
In the second step, ‘Deliver, various communication strategies were employed to
target specific interests and preferred communication modes of potential client.
Examples from the website are shown in Figure 3. Digitally Printing Print-On-Demand
(POD) Direct Mail Efforts allowed over 11,000 possible combinations of text and
graphics to deliver customized inquiry fulfillment communications.
Over eight years, the website evolved from brochure-ware into an interactive and
transactional site using Web 2.0 technologies. Visitors could access web-cams to take
virtual tours of golf courses, museums and other places of interest, make reservations
for on-island activities such as golf or swimming with dolphins, and check water
temperatures for diving. In addition, online booking functionality and vacation
packages made the purchasing a Bermuda vacation simple and efficient.
A particularly target group was repeat visitors. The first communication intended to
create repeat visitors to Bermuda was delivered within days of the traveler’s return
home. Each visitor received a thank you mailing from the Minister of Tourism. This
mailing directed visitors to take an online survey about their recent trip. This data was
then appended to the visitor’s file for use in remarketing efforts. Subsequent efforts
included an electronic newsletter and follow-up communications leading up to the
anniversary of the visitor’s last trip.
3.2.3 Third Step in Personalization Process: ‘Measure’
The third step in the personalization process is ‘Measure’, and a continual cycle of
assessment and refinement was adopted as shown in Figure 1 as a feedback loop. A
comprehensive set of measurements and metrics were used.
In spite of the customized nature of the POD Direct Mail Effort fulfillment,
material costs dropped by 38% over the traditional “pick-and-pack”
fulfillment response.
In-home delivery dropped from an average of seven days to an average of
three days.
Since each brochure was created on an as-needed basis, BDOT incurred no
inventory costs for storing printed materials, and materials could be updated
regularly to accommodate changes. For example, changes in phone numbers
for hotels or scuba diving shops could be made in minutes.
The repeat visitor effort generated a 27% response rate.
The sum of these efforts reduced the time between visits and helped increase
the revisit rate of the island to 48%.
During the eight years of DME development and use, the average length of
stay during Peak Season increased 8%.
Visitor expenditures (on a per visitor basis) during Peak Season increased
11%.
Leads sourced through 1-800-BERMUDA resulted in a prospect conversion
rate of 6.3% and a Return on Investment of 2,940%.
Remarketing efforts lifted the conversion rate an additional 5.4%.
Personalized inquiry fulfillment lifted conversion rates 7.8% over the previous
generic inquiry fulfillment mailing.
Revisit rates climbed to 48%, second only to Maui among travel and tourism
destinations.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
3.3 Socio-Technical Issues
Attitudes toward, and maintenance of, the DME presented challenging socio-technical
problems. The BDOT organization was non-technical and not trained in using
advanced technology. Yet much of the content needed for personalization needed to be
refreshed and updated continually by expert providers who did not have technical
training. To overcome the lack of technical knowledge, simple logistics were needed
for a sophisticated system.
To aid in the adoption of the platform, Euro RSCG made the DME easy and
efficient to update by BDOT staff members who had never been exposed to this level
of technology (see Figure 3):
(1) The call center provided software screens for the customer service representatives,
which communicated with the central database and became integrated into the DME.
The Call Center scripts were updated dynamically based on the caller's needs and could
be updated by the BDOT staff without a programmer’s assistance. This allowed
Bermuda to adjust their travel offers and island information to react to market demands.
(2) The automated e-mail marketing program enabled the Tourism staff and Euro
RSCG Discovery to create emails for any segment of the customer database, adding
words, text and graphics to create marketing emails. These emails were part of an
ongoing Touchpoint marketing plan, which was based on the consumer's preferences
and their intended travel dates. The automated system also interacted with the Call
Center to allow outbound telemarketing calls to be part of the Touchpoint marketing
plan.
(3) The calendar of events allowed visitors to search events by date and/or topic. The
tourism staff kept the calendar up-to-date, providing visitors with a valuable tool to
plan an exciting and memorable visit to the island.
(4) A variety of e-mail and web-based communications and alerts were produced
through the website and centralized database. E-newsletters were produced on an
ongoing basis and were delivered to various segments of the customer database based
on interests. Web-Updates were alerts produced by the website when special marketing
offers were updated on the website by content providers. This allowed customers to
be updated on airfare specials and other travel offers. E-Postcards allowed visitors to
produce and e-mail their own postcards to friends and families before, during, or after
their trip, and create a valuable word-of-mouth marketing medium.
4. Conclusions and Limitations
We have provided support for the theoretical process of personalization - Understand,
Deliver, Measure in a real setting. Associated socio-technical issues included
developing ways that content providers and consumers with little technical expertise
could interact with a sophisticated system. The Euro RSCG Discovery case provides
deep knowledge about the ways that personalization can influence decision makers,
consistent with theories of the self as an interpretative frame. Our findings are
consistent with Tam and Ho (2006) who found in a laboratory setting that personalized
web services attracted more attention, enabled users to more quickly create preference
structures faster, and biased the decision outcome.
The DME case study suggests a refinement of the Personalization Process Model
shown in Figure 1. Customers created content and products in the Web 2.0
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
environment that became a feedback loop. An area of future study is to incorporate
customer involvement in the theoretical model of personalization. Other findings
include:
Customization based on relevant data provides a personalized experience. The
DME allowed Bermuda to set itself apart from other islands with similar product
offerings by delivering a personal vacation experience, beginning with the consumer’s
first interaction with the island.
Customers become product designers and product testers with Web 2.0 technologies.
The DME invited prospects to play varying roles and enjoy varying experiences. The
Bermuda DME turned prospective visitors into product designers and product testers as
suggested by Nambisan and Nambisan (2008). By choosing own their interests, hotel
preferences, gateway cities, and other variables, each prospect was designing his or her
own unique island experience.
Interaction between a human and the technology amplifies user experience. By
taking virtual tours, prospects could sample Bermuda’s golf courses, accommodations,
and historic sites getting a taste of the island experience before booking a trip. The
online presence, in particular, created a pragmatic experience for the prospective visitor,
by providing relevant, detailed information on a variety of subjects. For example,
scuba enthusiasts could visit the website and find average water temperatures for each
season of the year. Fisherman could determine which fish were in season at any given
time. Birdwatchers could visit the “birding” section of the site and listen to recorded
calls from indigenous and migratory birds. In the case of Bermuda tourism, the
interaction between a human and the technology reinforced an inherently hedonic
experience, based on the recreational nature of the product.
There are, of course, limitations to our study. Since the research involves a live case
over a long time period, it was not possible to control all variables that could
potentially influence the output measurements. The measures given to determine the
effect of personalization in this case are material costs and inventory costs associated
with advertising, repeat visitor response rate, time between visits, revisit rate, average
length of stay, prospect conversion rate, return on investment, and visitor expenditures.
Although we have presented a large number of potential metrics to validate the effect
of personalization, it is possible that factors such as increased market penetration
contributed to the changes in output measures that we observed.
5. Summary
The Euro RSCG Discovery experience with the Dynamic Marketing Environment
empirically supports theory on the effect of personalization on decision making and
provides insight into the process of personalization, its implementation, and metrics
that can be used to assess its effectiveness. The case shows that personalization can be
used to influence decisions in product choice by shaping each customer’s brand
experience from the initial point of contact with the product through usage and
afterwards. The findings suggest an improvement to the theoretical model by including
the effect of consumer co-creation of content in the model.
REFERENCE: Phillips-Wren, G. and Wygant, J. (2010). Influencing
consumer decisions through personalization. Bridging the Socio-Technical
Gap in Decision Support Systems, Proceedings of 15th IFIP WG8.3 International
Conference, (A. Respicio, F. Adam, G. Phillips-Wren, Teixeira, C, Telhada, J.,
eds.), ISBN 978-1-60750-576-1, 152-162.
Socio-technical issues discussed in this paper primarily involve users attitudes
toward, and interaction with, the sophisticated system needed to deliver personalized
services. The case illustrates that an organization resistant to technology can adopt and
use technology if they are given tools that are perceived as valuable and simple to use,
similar factors in the Technology Acceptance Model (Davis, 1989). Providers need to
modify and update content to provide a rich set of information that can be used to
personalize a product, and consumers need access to advanced technologies that enable
aspects of personalization. The organizations in our study found that delivering
personalization with Web 2.0 and emerging 3.0 technologies can simultaneously
influence consumer decisions and reduce costs.
6. Acknowledgements
We would like to thank Euro RSCG Discovery for their participation and cooperation.
We would also like to thank the reviewers for their suggestions which improved the
quality of the paper.
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A study developed and validated new scales for perceived usefulness and perceived ease of use, which were hypothesized to be fundamental determinants of user acceptance. The definitions of the 2 variables were used to develop scale items that were pretested for content validity. The items were then tested for reliability and construct validity in 2 studies involving a total of 152 users and 4 application programs. After refining and streamlining the measures, the resulting 2 scales of 6 items each demonstrated reliabilities of .98 for usefulness and .94 for ease of use. The scales also exhibited high convergent, discriminant, and factorial validity. In both studies, usefulness had a greater correlation with usage behavior than did ease of use, though both were significantly correlated with current usage and future usage. Regression analyses suggest that perceived ease of use may actually be a casual antecedent to perceived usefulness, as opposed to a direct determinant of system usage.
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Outsourcing has long been used, notably in IT where the investments required to run systems were large and expertise was in short supply. Throughout the 70s and 80s, many companies lacked the IT infrastructure to run their applications efficiently and relied on providers of IT services for payroll and accounting applications. Since then, outsourcing has been used as a standard component of management strategy for a wide range of activities, rather than simply as a means to reduce costs and headcounts. Recent research has focused on BPO, KPO and open innovation as concepts which the IT outsourcing concept has fostered. This research is concerned with the “new” breed of outsourcing whereby entire business processes, sometimes critical to companies, are outsourced and clients build up sufficient trust with their partners that they rely on them for key aspects of their business such as bundling of key inputs, critical deliveries or complex data mining operations. Such arrangements require new types of outsourcing service providers, with finely tuned mixes of technological and business competences. Using two case studies, we study this new type of outsourcing from the points of view of both the client and the outsourcer.
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Many companies have established technology-based platforms or virtual customer environments to partner with their customers in innovation and value creation. In pursuing such initiatives, most companies seem to focus primarily on customers) innovative contributions, paying limited attention to customers' interaction experiences in the VCE. But the VCE experience has broader and more profound implications - particularly for customer relationship management. In this article, the authors offer a framework to help companies understand and evaluate customers' VCE experience profile. The authors describe five customer roles in innovation and value cocreation: product conceptualizer, product designer, product tester, product support specialist and product marketer. Each role has something to offer. However, depending on the customer innovation role, the nature of the customer interactions and the technologies used in the VCE will vary. The VCE customer experience is made up of four components: the pragmatic experience (its ability to provide information), the sociability experience (how it promotes group discussion)) the usability experience (defined by the quality of the human-computer interactions) and the hedonic experience (relating to mental stimulation and entertainment). Drawing on examples from companies including Microsoft, SAP, Samsung, BMW, Volvo and Ducati, the authors suggest strategies and practices to enhance customer experiences in VCEs and ensure favorable outcomes in terms of both innovation management and customer relationship management. Designing and implementing the right system can help companies improve innovation and customer relationship management. Therefore, managers should view their VCE initiatives as an integral part of their overall innovation and customer strategies. What's more, the costs of implementation can vary widely. Therefore, companies need to be careful about selecting and implementing a portfolio of strategies and practices that meets the needs of the types of customers they want to engage in value cocreation.
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Despite the growing maturity of new, interactive media, rhetoric about its possibilities and potentialities that abounded in its earliest days still endures. The growth of detailed and empirical work, which has sought to populate the digital landscape with grounded research calling into question this rhetoric, has not stopped new media debate from continuing to be shaped, in part, by the language of the potential. This paper is concerned with one aspect of new media's potential, personalization. It focuses on new media's proclaimed capacity to be adapted to meet the needs and desires of individual users. This is a trope that runs through much humanities and social sciences literature on new media and ICTs, yet despite recognition of the possibility of personalization offered by networked media technologies, there is very little grounded, empirical work on this subject in these fields. In order to address this absence, this paper compares an attempt to personalize new media web content on a two-year research endeavour entitled Project @pple with the rhetoric about the potentiality for personalization that new technologies offers. It aims to contribute to understandings of personalization by detailing the issues that arise when attempting to implement it. The argument of the paper is that the difficulties encountered on Project @pple suggest that, in real-life situations, characterized as they are by constraints and complexities, it is not always a straightforward process for personalization to cease to be potential and to become actual.
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Self–other differences in processing personal information were investigated in 5 experiments with a total of 53 undergraduates by having Ss make self-referent (describes you?) or other-referent (describes experimenter?) ratings of personal adjectives. Results indicate that self-ratings were consistently judged as easier to make, and Ss always placed more confidence in these judgments. An analysis of rating times showed that only adjectives with long rating times were recalled for the unknown-other-referent task (Exps II and III). In contrast, the recalled words for the self-referent task had very short rating times. This difference is explained via a "2-process" interpretation. Unknown-other-referent processing involves a relatively inefficient rehearsal or effort strategy, whereas self-referent processing involves the self as a highly organized and efficient schema. The effects of familiarity on other-referent processing were examined in Exps IV and V. A model of other processing is formulated to account for the observed changes in processing information about a familiar other. (34 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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A formidable synergy can be obtained by putting expert system technology into the Internet. The modern trend of embedding expert systems into Websites turns out to be very promising, in particular for the field of marketing via the Web. The last two years have seen a growing interest in providing Websites with suitable embedded expert systems for one–to–one marketing. One–to– one marketing means marketing in a personalized way, i.e. marketing in a way that is adaptive to the personal needs of the user. A basic feature of this marketing framework consists in personalized prioritizing of news, i.e. presenting information in an order that is relevant to the specific needs of the current user. If the personalized prioritizing of news is a very useful feature in wired Web, it becomes essential in wireless Web, the promising next generation of the Web. The paper presents a general methodology for personalized prioritizing of news. The methodology integrates decision theory with a deep–knowledge–based user model (i.e. causal knowledge linking user preferences to user goals). The deep–knowledge model of the user is a source of power of the methodology because it allows the system to know (and possibly explain) why the user acts the way he/she acts. Another relevant aspect of the methodology is that the burden of personalization is not placed on the user, and in fact the user does not have to declare his/her needs or interests or goals: they are automatically inferred from his/her profile data. In order to investigate the ideas underlying the proposal, a methodology example has been implemented in a prototype and then tested on real cases in the context of a supercomputing portal.
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Providing a complete portal to the world of case study research, the Fourth Edition of Robert K. Yin's bestselling text Case Study Research offers comprehensive coverage of the design and use of the case study method as a valid research tool. This thoroughly revised text now covers more than 50 case studies (approximately 25% new), gives fresh attention to quantitative analyses, discusses more fully the use of mixed methods research designs, and includes new methodological insights. The book's coverage of case study research and how it is applied in practice gives readers access to exemplary case studies drawn from a wide variety of academic and applied fields.Key Features of the Fourth Edition Highlights each specific research feature through 44 boxed vignettes that feature previously published case studies Provides methodological insights to show the similarities between case studies and other social science methods Suggests a three-stage approach to help readers define the initial questions they will consider in their own case study research Covers new material on human subjects protection, the role of Institutional Review Boards, and the interplay between obtaining IRB approval and the final development of the case study protocol and conduct of a pilot case Includes an overall graphic of the entire case study research process at the beginning of the book, then highlights the steps in the process through graphics that appear at the outset of all the chapters that follow Offers in-text learning aids including 'tips' that pose key questions and answers at the beginning of each chapter, practical exercises, endnotes, and a new cross-referencing tableCase Study Research, Fourth Edition is ideal for courses in departments of Education, Business and Management, Nursing and Public Health, Public Administration, Anthropology, Sociology, and Political Science.