Learning User Real-Time Intent for Optimal Dynamic Web Page Transformation

Many e-commerce websites struggle to turn visitors into real buyers. Understanding online users' real-time intent and dynamic shopping cart choices may have important implications in this realm. This study presents an individual-level, dynamic model with concurrent optimal page adaptation that learns users' real-time, unobserved intent from their online cart choices, then immediately performs optimal Web page adaptation to enhance the conversion of users into buyers. To suggest optimal strategies for concurrent page adaptation, the model analyzes each individual user's browsing behavior, tests the effectiveness of different marketing and Web stimuli, as well as comparison shopping activities at other sites, and performs optimal Web page transformation. Data from an online retailer and a laboratory experiment reveal that concurrent learning of the user's unobserved purchase intent and real-time, intent-based optimal interventions greatly reduce shopping cart abandonment and increase purchase conversions. If the concurrent, intent-based optimal page transformation for the focal site starts after the first page view, shopping cart abandonment declines by 32.4% and purchase conversion improves by 6.9%. The optimal timing for the site to intervene is after three page views, to achieve efficient learning of users' intent and early intervention simultaneously.

[1]  Paul A. Pavlou,et al.  Building Effective Online Marketplaces with Institution-Based Trust , 2004, Inf. Syst. Res..

[2]  Herbert A. Simon,et al.  A study of collaborative scientific discovery , 2002 .

[3]  Fred D. Davis,et al.  User Acceptance of Computer Technology: A Comparison of Two Theoretical Models , 1989 .

[4]  Peter E. Rossi,et al.  Response Modeling with Nonrandom Marketing-Mix Variables , 2004 .

[5]  Philip Heidelberger,et al.  Simulation Run Length Control in the Presence of an Initial Transient , 1983, Oper. Res..

[6]  Christine D. Reid Icons of Business: An Encyclopedia of Mavericks, Movers and Shakers , 2008 .

[7]  Blair H. Sheppard,et al.  The Theory of Reasoned Action: A Meta-Analysis of Past Research with Recommendations for Modifications and Future Research , 1988 .

[8]  Andrew G. Parsons,et al.  Atmosphere in fashion stores: do you need to change? , 2011 .

[9]  I. Ajzen The theory of planned behavior , 1991 .

[10]  S. Viswanathan,et al.  Online Infomediaries and Price Discrimination: Evidence from the Auto-Retailing Sector , 2005 .

[11]  Peter E. Rossi,et al.  Bayesian Statistics and Marketing: Rossi/Bayesian Statistics and Marketing , 2006 .

[12]  Jaewon Kang,et al.  Online Shopping Hesitation , 2006, Cyberpsychology Behav. Soc. Netw..

[13]  B. Ohman,et al.  Discrete sensor validation with multilevel flow models , 2002 .

[14]  Terence A. Shimp,et al.  The Theory of Reasoned Action Applied to Coupon Usage , 1984 .

[15]  David Sprott,et al.  It's beginning to smell (and sound) a lot like Christmas: the interactive effects of ambient scent and music in a retail setting , 2005 .

[16]  Dan Ariely,et al.  Shopping Goals, Goal Concreteness, and Conditional Promotions , 2006 .

[17]  Muhammad Muazzem Hossain,et al.  Why do shoppers abandon shopping cart? Perceived waiting time, risk, and transaction inconvenience , 2009 .

[18]  Kieran Mathieson,et al.  Predicting User Intentions: Comparing the Technology Acceptance Model with the Theory of Planned Behavior , 1991, Inf. Syst. Res..

[19]  W. Kamakura,et al.  Household Life Cycles and Lifestyles in the United States , 2006 .

[20]  Peter S. Fader,et al.  On the Depth and Dynamics of Online Search Behavior , 2004, Manag. Sci..

[21]  H. Simon,et al.  Models Of Man : Social And Rational , 1957 .

[22]  Alfred Kobsa,et al.  Personalised hypermedia presentation techniques for improving online customer relationships , 2001, The Knowledge Engineering Review.

[23]  J. Jacoby Stimulus-Organism-Response Reconsidered: An Evolutionary Step in Modeling (Consumer) Behavior , 2002 .

[24]  M. Laroche,et al.  The role of emotions in online consumer behavior: a comparison of search, experience, and credence services , 2012 .

[25]  C. McDaniel,et al.  A profile of browsers in regional shopping malls , 1987 .

[26]  Peter S. Fader,et al.  Dynamic Conversion Behavior at E-Commerce Sites , 2004, Manag. Sci..

[27]  Mary Jo Bitner,et al.  Servicescapes: The Impact of Physical Surroundings on Customers and Employees: , 1992 .

[28]  Alok Gupta,et al.  GIST: A Model for Design and Management of Content and Interactivity of Customer-Centric Web Sites , 2004, MIS Q..

[29]  Wendy W. Moe An Empirical Two-Stage Choice Model with Varying Decision Rules Applied to Internet Clickstream Data , 2006 .

[30]  Joseph S. Valacich,et al.  The Influence of Website Characteristics on a Consumer's Urge to Buy Impulsively , 2009, Inf. Syst. Res..

[31]  Thomas Adelaar,et al.  Effects of media formats on emotions and impulse buying intent , 2003, J. Inf. Technol..

[32]  Michael J. Pazzani,et al.  Learning and Revising User Profiles: The Identification of Interesting Web Sites , 1997, Machine Learning.

[33]  John A. Czepiel,et al.  The Services challenge : integrating for competitive advantage , 1987 .

[34]  J. Ledolter,et al.  Estimating Promotion Response When Competitive Promotions Are Unobservable , 2007 .

[35]  Francesco Ricci,et al.  Travel Recommender Systems , 2002 .

[36]  Florian Zettelmeyer,et al.  How the Internet Lowers Prices: Evidence from Matched Survey and Automobile Transaction Data , 2006 .

[37]  Jonathan W. Palmer,et al.  Web Site Usability, Design, and Performance Metrics , 2002, Inf. Syst. Res..

[38]  Chang-Hoan Cho,et al.  Different Forced-Exposure Levels to Banner Advertisements , 2001, Journal of Advertising Research.

[39]  Yoon Ho Cho,et al.  A personalized recommender system based on web usage mining and decision tree induction , 2002, Expert Syst. Appl..

[40]  Detmar W. Straub,et al.  Research Commentary: Transformational Issues in Researching IS and Net-Enabled Organizations , 2001, Inf. Syst. Res..

[41]  Peter E. Rossi,et al.  The Value of Purchase History Data in Target Marketing , 1996 .

[42]  M. Gilly,et al.  Shopping Online for Freedom, Control, and Fun , 2001 .

[43]  Catarina Sismeiro,et al.  A Model of Web Site Browsing Behavior Estimated on Clickstream Data , 2003 .

[44]  Young-Hoon Park,et al.  Modeling Browsing Behavior at Multiple Websites , 2004 .

[45]  P. Chatterjee,et al.  Modeling the Clickstream: Implications for Web-Based Advertising Efforts , 2003 .

[46]  Wendy W. Moe,et al.  The Influence of Goal‐Directed and Experiential Activities on Online Flow Experiences , 2003 .

[47]  B. Ratchford,et al.  The Impact of the Internet on Information Search for Automobiles , 2003 .

[48]  William P. Putsis,et al.  Buying or Just Browsing? the Duration of Purchase Deliberation , 1994 .

[49]  Philip A. Titus,et al.  The consumer retail search process: A conceptual model and research agenda , 1995 .

[50]  Ajit Kambil,et al.  Consumer Behavior in Web-Based Commerce: An Empirical Study , 2001, Int. J. Electron. Commer..

[51]  Elaine Sherman,et al.  Mood States of Shoppers and Store Image: Promising Interactions and Possible Behavioral Effects , 1987 .

[52]  John Riedl,et al.  E-Commerce Recommendation Applications , 2004, Data Mining and Knowledge Discovery.

[53]  S. Chib,et al.  Understanding the Metropolis-Hastings Algorithm , 1995 .

[54]  P. Kotler Atmospherics as a Marketing Tool , 1974 .

[55]  Richard N Katz Web Portals and Higher Education: Technologies to Make It Personal , 2002 .

[56]  M. Newton Approximate Bayesian-inference With the Weighted Likelihood Bootstrap , 1994 .

[57]  NadkarniSucheta,et al.  A task-based model of perceived website complexity , 2007 .

[58]  S. Viswanathan,et al.  Clicks to Conversion: The Impact of Product and Price Information , 2010 .

[59]  Kannan Srinivasan,et al.  Modeling Online Browsing and Path Analysis Using Clickstream Data , 2004 .

[60]  Bertil Hultén,et al.  Sensory cues and shoppers’ touching behaviour: the case of IKEA , 2012 .

[61]  Dennis L. Hoffman,et al.  Marketing in Hypermedia Computer-Mediated Environments : Conceptual Foundations 1 ) , 1998 .

[62]  Lenita M. Davis,et al.  Atmospheric qualities of online retailing: A conceptual model and implications , 2001 .

[63]  Pamela W. Henderson,et al.  Improving the Store Environment: Do Olfactory Cues Affect Evaluations and Behaviors? , 1996 .

[64]  Jonathan L. Herlocker,et al.  Evaluating collaborative filtering recommender systems , 2004, TOIS.

[65]  Jochen Wirtz,et al.  Congruency of Scent and Music As a Driver of In-Store Evaluations and Behavior , 2001 .

[66]  Shuk Ying Ho,et al.  Web Personalization as a Persuasion Strategy: An Elaboration Likelihood Model Perspective , 2005, Inf. Syst. Res..

[67]  John Geweke,et al.  Evaluating the accuracy of sampling-based approaches to the calculation of posterior moments , 1991 .

[68]  Marios Koufaris,et al.  Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior , 2002, Inf. Syst. Res..

[69]  Pradeep K. Chintagunta,et al.  The Effect of Banner Advertising on Internet Purchasing , 2006 .

[70]  Carl F. Mela,et al.  E-Customization , 2003 .

[71]  Rob Miller,et al.  Automation and customization of rendered web pages , 2005, UIST.

[72]  Jaeki Song,et al.  A Theoretical Approach to Web Design in E-Commerce: A Belief Reinforcement Model , 2005, Manag. Sci..

[73]  Michel Wedel,et al.  Global and local covert visual attention: Evidence from a bayesian hidden markov model , 2003 .

[74]  Baohong Sun,et al.  Cross-Selling the Right Product to the Right Customer at the Right Time , 2011 .

[75]  Narayan Ramasubbu,et al.  Designing Web Sites for Customer Loyalty Across Business Domains: A Multilevel Analysis , 2006, J. Manag. Inf. Syst..

[76]  J. Rossiter,et al.  Store atmosphere: an environmental psychology approach , 1982 .

[77]  Oded Netzer,et al.  A Hidden Markov Model of Customer Relationship Dynamics , 2008, Mark. Sci..

[78]  Peter E. Rossi,et al.  Bayesian Statistics and Marketing , 2005 .

[79]  Eric J. Johnson,et al.  When Web Pages Influence Choice: Effects of Visual Primes on Experts and Novices , 2002 .

[80]  S. Viswanathan,et al.  Online Infomediaries and Price Discrimination: Evidence from the Automotive Retailing Sector. , 2007 .

[81]  J. Russell,et al.  An approach to environmental psychology , 1974 .

[82]  FANGFANG DIAO,et al.  Orienting Response and Memory for Web Advertisements: , 2004, Commun. Res..

[83]  Sucheta Nadkarni,et al.  A Task-Based Model of Perceived Website Complexity , 2007, MIS Q..

[84]  Andrea Everard,et al.  How Presentation Flaws Affect Perceived Site Quality, Trust, and Intention to Purchase from an Online Store , 2005, J. Manag. Inf. Syst..

[85]  P. Gollwitzer Implementation intentions: Strong effects of simple plans. , 1999 .

[86]  Izak Benbasat,et al.  Investigating the Influence of the Functional Mechanisms of Online Product Presentations , 2007 .

[87]  Vijay Gurbaxani,et al.  Perceptual structure of the desired functionality of internet-based health information systems , 2006, Health care management science.

[88]  D. Hoffman,et al.  The Influence of Goal-Directed and Experiential Activities on Online Flow Experiences , 2003 .

[89]  Huberman,et al.  Strong regularities in world wide web surfing , 1998, Science.

[90]  R. Bucklin,et al.  Modeling Purchase Behavior at an E-Commerce Web Site: A Task-Completion Approach , 2004 .