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to both industry experts and academic researchers dealing with more related to subjective experience and operates at a lower level
comparison-shopping agents. For example, by matching the of consciousness. The rule-based reasoning operates using
current varieties of comparison-shopping agents to the cognitive abstract symbols based on logical rules that have a certain well-
processes of online decision-making, we may be able to find new specified symbolic logical structure [10, 27]. Past research
opportunities for providing better comparison-shopping services. suggests that these two modes of thinking dominate at different
stages of thinking or may work simultaneously [27].
In this paper, we use a basic classification concept in biology as
an analogy to classify these agents. If we regard the Internet as an Specifically, when consumers compare two or more items, they
ecosystem that includes various online vendors, then comparison- actually aim to differentiate them and to evaluate the differences
shopping agents fit very well in this ecosystem as a class of based on certain preferences. These tasks in the process of
herbivores that feed on plant (original data producers like online comparison use aspects of both associative reasoning and rule-
vendors) and in turn, become the target of carnivores (upstream based reasoning.
agents or meta-agents). Sitting on the top of the information food
chain are the shopping demands of online shoppers, and their Differentiation is essentially a process dominated by rule-based
click stream will in turn be the information “food” for online reasoning because it first abstracts the products in the choice set
vendors. Together, these participants – the shoppers, vendors, into symbols like price, weight, quality, etc. And then, it operates
comparison-shopping agents and upstream agents constitute the on these symbols based on certain rules, such as ‘if all other
complete ecosystem of electronic commerce world. attributes are the same, the lower priced object is preferred’ [6,
22, 23, 27].
Researchers have suggested that comparison is a thinking process Specifically, differentiation is objective and quantitative in nature.
that involves two modes of thinking: associative reasoning and Both the input and output of the comparison process are objective
rule-based reasoning. The associative reasoning operates by data, irrespective of differences between decision-makers. In
grouping objects with other objects that are most similar [24]. It is
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terms of designing the PCA, it implies that the differentiation 3.1 Differentiation PCA
operation can be standardized with fixed functionalities.
Differentiation PCAs are those comparison-shopping agents that
Evaluation is a mixed process involving both objective and provide differentiation information for various attributes of choice
subjective information, so that different decision-makers may alternatives. Currently, the differentiation PCAs available are
have different evaluations of the same product. The input of mostly price comparison agents such as pricescan.com. These
evaluation can be objective data (e.g. price of product) or agents usually target 40-70 or more online vendors and establish a
quantified subjective data (e.g. quality of service). The output is formal or informal partnership with each of them.
quantified or aggregated utility information for each alternative.
In many cases, evaluation may be conducted based on common A formal partnership benefits both the agent and the vendors. On
sense. For example, if the only difference between product A and one hand, it enables the agent to extract product information from
product B is price and B is less expensive, we can evaluate B as vendors without being blocked and if necessary, to contact
better than A. However, the situation will become more complex vendors to obtain updated product catalogs directly. On the other
when the differences are not limited to one dimension, and the hand, the vendors can put restrictions on the information being
attributes involve trade-offs. For example, Product A may be obtained by the agent, for example, by providing different pricing
different from product B in two aspects: A’s price is higher than schemes to agents so that they can achieve more accurate market
B, but A’s warranty period is also longer than B. In this case, two segmentation.
consumers may evaluate the two products differently if their
subjective values and weights for the two attributes are different3. An informal partnership usually operates in the case of more
Usually, the larger the number of differences in attributes, the powerful agents like pricescan.com. Because of their sheer market
higher the degree of subjective-ness in the evaluation output. presence, the value of visibility makes many vendors willing to
open their doors to these agents, though there is no formal
Preference identification is mainly a cognitive process based on partnership between them and there is in fact, some risk of
associative reasoning. The input of this process is scenario unfavorable comparison.
information (i.e., product within a personal usage context, such as
‘a PC for my home office’) instead of product information per se. We can further classify differentiation PCA into three species
It should be noted that the preference identification stage may not based on their “living mechanism.” They are independent
be necessary in decision-making if the evaluation process could differentiation PCA, dependent differentiation PCA, and
generate a single best choice based on the utility of each embedded differentiation PCA.
alternative. Preference identification happens when the decision-
maker has trade-off difficulties among several alternatives and
cannot reach a final decision. So preference identification is
complementary to evaluation. For example, an online shopper
finds two models of Personal Digital Assistants equally attractive:
one has a larger memory and the other has a faster CPU. He feels
difficulty in making a choice between these two and checks with a
PCA site such as epinion.com and finds one piece of evaluation is
especially relevant to him: because of large memory, one Figure 2. Categorization of Differentiation PCA
commenter has said, she was able to pack more applications into
the PDA and make it really convenient for various purposes.
Because this online shopper is also planning to use the PDA for
3.1.1 Independent PCA
similar purposes, he is able to make the decision to buy the brand Independent PCAs usually do not have formal partnership
with the larger memory instead of the faster CPU. programs with vendors. Their revenues come from advertisements
of third party vendors that place ads on the search results page4,
the method currently adopted by Google.com [9]. By adopting
3. CLASSIFICATION OF PCA this method, they can remain neutral when providing
Based on the above discussion, we can group PCAs based on their differentiation information. Pricescan.com and NexTag.com are
distinction in focusing on these three aspects of comparison, typical agents in this category.
namely differentiation, evaluation and preference identification.
Specifically, we propose that there are three categories of PCAs:
3.1.2 Dependent PCA
differentiation PCA, evaluation PCA, and preference
identification PCA. Dependent PCAs are agents that do have formal partnership with
online vendors. The predecessor of a dependent PCA is the
SABER system for airline seats reservation and ticketing created
by American Airline. Initially, this system always displayed
American Airline’s ticket information at the top for any agent
3 inquiry as long as American Airline had a ticket available for that
For details: If A is $20 more expensive than B and A has a
warranty period that is 6 months longer than B, which one offers
4
more utility to consumer? Different people may have different The advertisement is not in the search result but accompany the
opinions. Some may think $20 is worth more than the additional 6 result. Usually the agent will use data mining methods to list
months warranty and hence, decide that B is a better option, while relevant advertisements that might be interesting to the consumer
others may decide the exact opposite. submitting the search query.
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route, which put American Airline in a favorable competitive new TV serial or movie?). The unidimensional PCA that handles
position relative to other airlines. Pricewatch.com and this may collect user ratings, aggregate them and present rating
pricegrabber.com are both prominent dependent differentiation information as simple percentage number for the mobile phone
agents. They have their respective partner programs and because user, or as richer chart graph for the PC user to review.
of their increasing market power, the entry cost for vendors
wishing to participate is getting higher. Nowadays, it has already For unidimensional PCA, the immediate research task is to
become very costly for small vendors to participate in their identify and categorize the general evaluation goals of consumers.
programs. For example, do consumers need traffic route suggestions based
on travel time or travel distance? Based on such goals, PCAs can
3.1.3 Embedded PCA provide evaluation services in a predictable format.
The simplest species of differentiation PCA appears embedded in
websites of major retailers such as Amazon.com. This type of 3.2.2 Multidimensional PCA
PCA provides the differentiation information as part of the Multidimensional PCA extracts and collects quantified (subjective
product page content. It usually involves only one or two or objective) alternative information on multiple dimensions and
dimensions of differentiation (e.g., price, condition) for aggregates them for review. Multidimensional evaluation PCA is
simplification of comparison. By clicking the comparison button, already popular. Bizrate.com is one prominent agent of this type.
customer will be led to another page, which has detailed It collects customer experiences at several online stores and asks
comparison information. We call this type of PCA an embedded customers to quantify these into ratings on various dimensions,
PCA because it is embedded into the same product page for then aggregates them based on a normalized scale for
implicit differentiation. Embedded PCA is very efficient because comparison.
it only needs limited information processing capabilities on the
customer side, while at the same time it provides some
comparison information to allow customers to make more
3.3 Preference Identification PCA
informed decisions. Preference agents collect experiences of online shoppers for
different products or services and then aggregate them for
decision-making. Preference agents emerged because of the
3.2 Evaluation PCA analogical way in which human beings think and make decisions
Evaluation PCAs are comparison-shopping agents that could [21, 28]. They provide different situational contexts for the
provide quantified evaluation information on alternatives. The comparison and evaluation of products or services instead of
input information of evaluation agents can be quantified comparing products or service per se. Context information is
subjective experience (e.g. quality of service) or objective collected from peer reviewers. So, if consumers cannot find
information of alternative choices. Based on the dimensions of appropriate context-relevant information based on their own
differentiation, we have at least two species of evaluation PCA: experiences, they can use peer experiences as surrogates to
unidimensional evaluation PCA and multidimensional evaluation identify their preferences and make choice decisions. This is
PCA. particularly relevant for services (e.g., hotels, restaurants,
concerts, cruises) where preferences can vary significantly across
situational contexts (e.g., usage occasions, seasons, goals).
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Table 1. Comparison of PCAs
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of even more PCAs, derivative PCAs will inevitably emerge to advanced PCAs and online shoppers will make up an information
collect and aggregate relevant information from these PCAs and food chain within the Internet ecosystem.
naturally replace them to assist online shoppers in decision-
making.
We can also expect that derivative PCAs will emerge from more
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