An Empirical Examination of the Effects of Web Personalization at Different Stages of Decision-Making

Personalization agents are incorporated in many websites to tailor content and interfaces for individual users. But in contrast to the proliferation of personalized web services worldwide, empirical research studying the effects of web personalization is scant. How does exposure to personalized offers affect subsequent product consideration and choice outcome? Drawing on the literature in HCI and consumer behavior, this research examines the effects of web personalization on users’ information processing and expectations through different decision-making stages. A study using a personalized ring-tone download website was conducted. Our findings provide empirical evidence of the effects of web personalization. In particular, when consumers are forming their consideration sets, the agents have the capacity to help them discover new products and generate demand for unfamiliar products. Once the users have arrived at their choice, however, the persuasive effects from the personalization agent diminish. These results establish that adaptive role of personalization agents at different stages of decision-making.