The Opposing Effects of Personalized Recommendations on Objective and Subjective Decision Outcomes

Gerald Haubl, University of Alberta, Canada
Benedict Dellaert, Maastricht University, The Netherlands
Murat Usta, University of Alberta, Canada
We argue that personalized product recommendations can have opposing effects on objective and subjective decision outcomes. On one hand, they enable consumers to make objectively better product choices. On the other hand, however, this type of decision assistance tends to have a negative impact on consumers’ subjective appraisal of their decisions. In a series of experiments, we (1) demonstrate the basic effect that personalized recommendations can cause consumers to make better choices and yet feel less satisfied with these decisions and (2) examine the mechanism underlying this paradoxical finding.
[ to cite ]:
Gerald Haubl, Benedict Dellaert, and Murat Usta (2007) ,"The Opposing Effects of Personalized Recommendations on Objective and Subjective Decision Outcomes", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 214-220.