The purpose of this research was to identify the relationship between the use of algorithmic recommendation systems in e-commerce and consumer trust in technology and the effect that these recommendations have on consumer purchasing behavior. As perso...
The purpose of this research was to identify the relationship between the use of algorithmic recommendation systems in e-commerce and consumer trust in technology and the effect that these recommendations have on consumer purchasing behavior. As personalization technologies continue to become an integral part of the online shopping experience, it is vital to understand how customers will respond both cognitively and emotionally to recommendations. This research created a structural model using previous research to develop hypotheses suggesting that algorithmic recommendations could influence consumer attitudes directly or indirectly through trust in technology. The data are gathered from an online survey of over 227 individuals, which uses structural equation modeling (SEM) to analyze the collected data. The evaluation of respondents revealed that algorithmic recommendations have a positive influence on consumers' trust in technology and their attitudes toward the recommended products. Furthermore, trust in technology strongly influenced consumers' attitudes, which in turn had a positive relationship with consumers' purchase intentions. The direct effect of algorithmic recommendations on consumers' purchase intentions was not statistically significant; rather, consumer attitudes were shown to exist as a major mediator in this decision-making process.
This research contributes to the theoretical understanding of AI-based recommendation systems, as it emphasizes the need for consumer trust in these technology-based systems to understand their cognitive and affective responses. The practical application of this research can assist digital platform operators who aim to enhance recommendation accuracy and increase user engagement on their platforms. This research assumes significance in the future for both AI-based product recommendation systems and consumer trust establishment through the use of technology.