Human factors determining consumer response to recommenders

The electronic provision of services and the use of consumer loyaltyschemes means that organisations can now track transactions and profileconsumers. Organisations can now monitor valued customers and offerinducements, or monitor vulnerable consumers and issue consumerwarnings. In addition to a consumer s profile, technology may also reveala consumer s location.Hence there is an emerging capability for organisations tospecifically target individual consumers at specific locations with theiradvertising (e.g. when nearing point of sale). The cost of this advertisingmay be comparatively cheap (e.g. internet SPAM), with the consumerpotentially bearing a greater proportion of the cost (e.g. premium SMS).This chapter considers factors that may influence consumer response torecommender agents.It seems that degree of risk, time pressure, as well as the consumers impulse control, intellectual attainment, and mental status will influencecompliance with recommender agents. Using loyalty schemes andtracking transactions may also give some indication of consumers whoexceed their affordable limits. This raises the question as to how best thistechnology can be applied to the concept of consumer protection -corporate ethical practices balancing marketing against consumerprotection