Journal
COMPUTERS IN HUMAN BEHAVIOR
Volume 124, Issue -, Pages -Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.chb.2021.106926
Keywords
Online behavioral targeting; Anthropomorphism; Algorithmic transparency; Algorithmic human likeness; Social presence
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The study investigates the effects of algorithmic transparency on consumers' experience of social presence and OBT effectiveness, finding that transparent algorithms with high cognitive similarity to humans can enhance social presence and OBT effectiveness.
Digital platforms increasingly use online behavioral targeting (OBT) to enhance consumers' engagement, which involves using algorithms to gaze at consumers-tracking their online activities and inferring their preferences-so as to deliver relevant, personalized messages (e.g., advertisements, recommendations) to consumers. In light of the rising call for algorithmic transparency, this study investigates the effects of algorithmic transparency on consumers' experience of social presence and OBT effectiveness, when the OBT algorithm has low or high level of similarity to humans' conscious mental processes. A one-factor, three-level (no transparency, vs. observer algorithm, vs. judge algorithm) online experiment with 209 participants was conducted. Results show that for individuals with low anthropomorphism tendency, the observer algorithm that did not form meaningful representations of consumers (i.e., low cognitive similarity to humans) reduced social presence, thereby compromising OBT effectiveness. The algorithm that judged consumers on meaningful dimensions (i. e., high cognitive similarity to humans) had no such effects. Findings suggest that anthropomorphism, as an important psychological mechanism underlying consumers' interaction with OBT platforms, may be inhibited by algorithmic transparency. Theoretical implications for understanding individuals' experience with OBT and human-machine communication in general and practical implications for designing algorithmic transparency in OBT practices are discussed.
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