Advertisement

Group Decision and Negotiation

, Volume 28, Issue 5, pp 961–990 | Cite as

Impatience Characteristics in Cloud-Computing-Services Procurement: Effects of Delay Horizon and Situational Involvement

  • Venkataraghavan Krishnaswamy
  • R. P. SundarrajEmail author
Article
  • 27 Downloads

Abstract

Cloud computing has transformed the decision-making processes involved in the procurement of information-technology services. Not only has it brought about tremendous speed-ups to computing jobs, but also, the flexibility it provides in terms of availability and pricing options now enables a consumer to make trade-offs between price and time, based on the situation on-hand and the turnaround-time requirements. These price-time trade-offs have been studied in the behavioral-economic literature, but have not been considered formally in the procurement and the cloud-system bodies of literature. We fill this gap, by taking up the question of how the impatience characteristics of the procurer (and in turn his/her procurement decisions) get affected by two behavioral factors, namely, delay horizon and situational involvement. We test the model using a factorial experiment with 180 participants and find that impatience degree and type are affected by delay horizon and situational involvement. We discuss practical implications for a cloud-service provider, as well as implications for the intertemporal and IS literature.

Keywords

Cloud computing Impatience Involvement Intertemporal choice Delay horizon Procurement Decision-preference 

Notes

References

  1. Anandasivam A, Best P, See S (2010) Customers’ preferences for infrastructure cloud services. In: 12th IEEE conference on commerce and enterprise computing (CEC), pp 144–149Google Scholar
  2. Andrzejak A, Kondo D, Yi S (2010) Decision model for cloud computing under SLA constraints. In: IEEE international symposium on modeling, analysis and simulation of computer and telecommunication systems (MASCOTS)Google Scholar
  3. Attema AE, Bleichrodt H, Rohde KI, Wakker PP (2010) Time-tradeoff sequences for analyzing discounting and time inconsistency. Manag Sci 56(11):2015–2030Google Scholar
  4. AWS Advisor (2018) Spot bid advisor. https://aws.amazon.com/ec2/spot/bid-advisor/. Accessed Sept 2018
  5. AWS Spot (2018) Amazon EC2 spot instances. https://aws.amazon.com/ec2/spot/. Accessed Sept 2018
  6. AWS_All (2018) Amazon AWS case studies https://aws.amazon.com/solutions/case-studies/all/. Accessed Sept 2018
  7. Barki H, Hartwick J (1989) Rethinking the concept of user involvement. MIS Q 13(1):53–63Google Scholar
  8. Barki H, Hartwick J (1994) Measuring user participation, user involvement, and user attitude. MIS Q 18(1):59–82Google Scholar
  9. Benzion U, Rapoport A, Yagil J (1989) Discount rates inferred from decisions: an experimental study. Manag Sci 35(3):270–284Google Scholar
  10. Bichler M, Kersten GE, Strecker S (2003) Towards a structured design of electronic negotiations. Group Decis Negot 12(4):311–335Google Scholar
  11. Bleichrodt H, Rohde KI, Wakker PP (2009) Non-hyperbolic time inconsistency. Games Econ Behav 66(1):27–38Google Scholar
  12. Bloch PH, Richins ML (1983) A theoretical model for the study of product importance perceptions. J Mark 47(3):69–81Google Scholar
  13. Broderick AJ, Mueller RD (1999) A theoretical and empirical exegesis of the consumer involvement construct: the psychology of the food shopper. J Mark Theory Pract 7(4):97–108Google Scholar
  14. Buyya R, Abramson D, Giddy J, Stockinger H (2002) Economic models for resource management and scheduling in grid computing. Concur Comput Pract Exp 13–15:1507–1542Google Scholar
  15. Buyya R, Branson K, Giddy J, Abramson D (2003) The virtual laboratory: a toolset to enable distributed molecular modelling for drug design on the world-wide Grid. Concur Comput Pract Exp 15(1):1–25Google Scholar
  16. Buyya R, Yeo CS, Venugopal S, Broberg J, Brandic I (2009) Cloud computing and emerging IT platforms: vision, hype, and reality for delivering computing as the 5th utility. Future Gen Comput Syst 25(6):599–616Google Scholar
  17. Chapman GB, Winquist JR (1998) The magnitude effect: temporal discount rates and restaurant tips. Psychon Bull Rev 5(1):119–123Google Scholar
  18. Chen CF, Tsai MH (2008) Perceived value, satisfaction, and loyalty of TV travel product shopping: involvement as a moderator. Tour Manag 29(6):1166–1171Google Scholar
  19. Clarke K, Belk RW (1979) The effects of product involvement and task definition on anticipated consumer effort. Adv Consum Res 6(1):313–318Google Scholar
  20. Cohen JB (1983) Involvement and you: 1000 great ideas. Adv Consum Res 10(1):325–328Google Scholar
  21. Coker KK, Pillai D, Balasubramanian SK (2010) Delay-discounting rewards from consumer sales promotions. J Prod Brand Manag 19(7):487–495Google Scholar
  22. Dastjerdi AV, Buyya R (2014) Compatibility-aware cloud service composition under fuzzy preferences of users. IEEE Trans Cloud Comput 2(1):1–3Google Scholar
  23. Ebert JE, Prelec D (2007) The fragility of time: Time-insensitivity and valuation of the near and far future. Manag Sci 53(9):1423–1438Google Scholar
  24. Frederick S, Loewenstein G, O’Donoghue T (2002) Time discounting and time preference: a critical review. J Econ Lit 40(2):351–401Google Scholar
  25. Freedman JL (1964) Involvement, discrepancy, and change. J Abnorm Soc Psychol 69(3):290Google Scholar
  26. Garg SK, Buyya R, Siegel HJ (2010) Time and cost trade-off management for scheduling parallel applications on utility grids. Futur Gen Comput Syst 26(8):1344–1355Google Scholar
  27. Genaud S, Gossa J (2011) Cost-wait trade-offs in client-side resource provisioning with elastic clouds. In: IEEE conference on cloud computing (CLOUD), pp 1–8Google Scholar
  28. Gino F, Pisano G (2008) Toward a theory of behavioral operations. Manuf Serv Oper Manag 10(4):676–691Google Scholar
  29. Green L, Fristoe N, Myerson J (1994) Temporal discounting and preference reversals in choice between delayed outcomes. Psychon Bull Rev 1(3):383–389Google Scholar
  30. Hantula DA, Bryant K (2005) Delay discounting determines delivery fees in an e-commerce simulation: a behavioral economic perspective. Psychol Mark 22(2):153–161Google Scholar
  31. Hartwick J, Barki H (1994) Explaining the role of user participation in information system use. Manag Sci 40(4):440–465Google Scholar
  32. Henzinger TA, Singh AV, Singh V, Wies T, Zufferey D (2010) Flexprice: flexible provisioning of resources in a cloud environment. In: 3rd IEEE conference on cloud computing (CLOUD), pp 83–90Google Scholar
  33. Hesketh B (2000) Time perspective in career-related choices: applications of time-discounting principles. J Vocat Behav 57(1):62–84Google Scholar
  34. Hitchon JC, Thorson E (1995) Effects of emotion and product involvement on the experience of repeated commercial viewing. J Broadcast Electron Media 39(3):376–389Google Scholar
  35. Hunton JE, Beeler JD (1997) Effects of user participation in systems development: a longitudinal field experiment. MIS Q 21(4):359–388Google Scholar
  36. Jain N, Menache I, Naor JS, Yaniv J (2014) A truthful mechanism for value-based scheduling in cloud computing. Theory Comput Syst 54(3):388–406Google Scholar
  37. Jarvenpaa SL, Ives B (1991) Executive involvement and participation in the management of information technology. MIS Q 15(2):205–227Google Scholar
  38. Kahneman D, Tversky A (1979) Prospect theory: an analysis of decision under risk. Econometrica 47(2):263–292Google Scholar
  39. Kappelman LA (1995) Measuring user involvement: a diffusion of innovation perspective. ACM SIGMIS Database DATABASE Adv Inf Syst 26(2–3):65–86Google Scholar
  40. Kersten GE, Lai H (2007) Negotiation support and e-negotiation systems: an overview. Group Decis Negot 16(6):553–586Google Scholar
  41. Kinard BR, Capella ML (2006) Relationship marketing: the influence of consumer involvement on perceived service benefits. J Serv Mark 20(6):359–368Google Scholar
  42. Kirby KN, Maraković NN (1996) Delay-discounting probabilistic rewards: rates decrease as amounts increase. Psychon Bull Rev 3(1):100–104Google Scholar
  43. Knox S, Walker D (2003) Empirical developments in the measurement of involvement, brand loyalty and their relationship in grocery markets. J Strateg Mark 11(4):271–286Google Scholar
  44. Koehler P, Anandasivam A, Dan MA, Weinhardt C (2010) Customer heterogeneity and tariff biases in cloud computing. In: International conference on information systems, p 106Google Scholar
  45. Krishnaswamy V, Sundarraj RP (2017) Intertemporal choices in cloud computing: effects of delay and delay horizon-an experimental study. In IEEE conference on Tech & Engg Mgmt Con (TEMSCON), pp 215–220Google Scholar
  46. Krishnaswamy V, Pahuja A, Sundarraj RP (2016) Integrating time-preferences into E-negotiation systems: a model, elicitation approach and experimental implications. Group Decis Negot 25(6):1137–1167Google Scholar
  47. Laczniak RN, Muehling DD, Grossbart S (1989) Manipulating message involvement in advertising research. J Advert 18(2):28–38Google Scholar
  48. Lichtenstein DR, Bloch PH, Black WC (1988) Correlates of price acceptability. J Consum Res 15(2):243–252Google Scholar
  49. Loewenstein G (1987) Anticipation and the valuation of delayed consumption. Econ J 97(387):666–684Google Scholar
  50. Loewenstein GF (1988) Frames of mind in intertemporal choice. Manag Sci 34(2):200–214Google Scholar
  51. Loewenstein G (1996) Out of control: visceral influences on behavior. Organ Behav Human Decis Process 65(3):272–292Google Scholar
  52. Loewenstein G, Prelec D (1991) Negative time preference. Am Econ Rev 81(2):347–352Google Scholar
  53. Loewenstein G, Prelec D (1992) Anomalies in intertemporal choice: evidence and an interpretation. Q J Econ 107(2):573–597Google Scholar
  54. Macías M, Guitart J (2011) Client classification policies for SLA negotiation and allocation in shared cloud datacenters. In: International workshop on grid eco and biz models, pp 90–104Google Scholar
  55. Macías M, Guitart J (2012) Client classification policies for SLA negotiation and allocation in shared cloud data centers. In: Vanmechelen K, Altmann J, Rana OF (eds) Lecture notes in computer science: economics of grids, clouds, systems, and services. Springer, Berlin, pp 90–104Google Scholar
  56. Mazur JE (1987) An adjusting procedure for studying delayed reinforcement. Commons, ML.; Mazur, JE.; Nevin, JA., pp 55–73Google Scholar
  57. Metcalfe J, Mischel W (1999) A hot/cool-system analysis of delay of gratification: dynamics of willpower. Psychol Rev 106(1):3Google Scholar
  58. Mitchell AA (1979) Involvement: a potentially important mediator of consumer behavior. In: ACR N Am Adv, pp 191–196Google Scholar
  59. Mittal B (1989) Measuring purchase-decision involvement. Psychol Mark 6(2):147–162Google Scholar
  60. O’Donoghue T, Rabin M (1999) Doing it now or later. Am Econ Rev 89(1):103–124Google Scholar
  61. Olsen SO (2007) Repurchase loyalty: the role of involvement and satisfaction. Psychol Mark 24(4):315–341Google Scholar
  62. Pahuja A, Sundarraj R, Krishnaswamy V (2015) CloudNeg: An autonomous multi issue negotiation system, with preference elicitation component, for trading cloud services. Published in design science research on information systems and technology (DESRIST)Google Scholar
  63. Petty RE, Cacioppo JT, Schumann D (1983) Central and peripheral routes to advertising effectiveness: the moderating role of involvement. J Consum Res 10(2):135–146Google Scholar
  64. Prebensen NK, Woo E, Chen JS, Uysal M (2013) Motivation and involvement as antecedents of the perceived value of the destination experience. J Travel Res 52(2):253–264Google Scholar
  65. Read D (2003) Intertemporal choice, LSE. WP. LSEOR 3Google Scholar
  66. Rodriguez MA, Buyya R (2014) Deadline based resource provisioning and scheduling algorithm for scientific workflows on clouds. IEEE Trans Cloud Comput 2(2):222–235Google Scholar
  67. Samuelson PA (1937) A note on measurement of utility. Rev Econ Stud 4(2):155–161Google Scholar
  68. Saqib N (2010) The effect of involvement, time and vividness on consumers’ valuation a test of prospect theory. Dissertation, University of ManitobaGoogle Scholar
  69. Saure D, Sheopuri A, Qu H, Jamjoom H, Zeevi A (2010) Time-of-use pricing policies for offering cloud computing as a service. In: IEEE international conference on service operations and logistics and informatics. IEEE, pp 300–305Google Scholar
  70. Sayman S, Öncüler A (2009) An investigation of time inconsistency. Manag Sci 55(3):470–482Google Scholar
  71. Schelling TC (1984) Self-command in practice, in policy, and in a theory of rational choice. Am Econ Rev 74(2):1–11Google Scholar
  72. Scholten M, Read D (2006) Discounting by intervals: a generalized model of intertemporal choice. Manag Sci 52(9):1424–1436Google Scholar
  73. Schorsch T, Wallenburg CM, Wieland A (2017) The human factor in SCM: introducing a meta-theory of behavioral supply chain management. Int J Phys Distrib Logist Manag 47(4):238–262Google Scholar
  74. Sherif M, Hovland IC (1961) Social judgement. Yale University Press, New HavenGoogle Scholar
  75. Soman D (2005) The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones. Mark Lett 16(3):347–360Google Scholar
  76. Sultan F, Henrichs RB (2000) Consumer preferences for Internet services over time: initial explorations. J Consum Mark 17(5):386–402Google Scholar
  77. Sultan F, Winer RS (1993) Time preferences for products and attributes and the adoption of technology driven consumer durable innovations. J Econ Psychol 14(4):587–613Google Scholar
  78. Thaler R (1981) Some empirical evidence on dynamic inconsistency. Econ Lett 8(3):201–207Google Scholar
  79. Thaler RH, Shefrin HM (1981) An economic theory of self-control. J Polit Econ 89(2):392–406Google Scholar
  80. Tomak K, Keskin T (2008) Exploring the trade-off between immediate gratification and delayed network externalities in the consumption of information goods. Eur J Oper Res 187(3):887–902Google Scholar
  81. Trope Y, Liberman N (2000) Temporal construal and time-dependent changes in preference. J Personal Soc Psychol 79(6):876Google Scholar
  82. Truong HL, Gangadharan GR, Comerio M, Dustdar S, De Paoli F (2011) On analyzing and developing data contracts in cloud-based data marketplaces. In: IEEE Asia-Pacific conference on services computing, pp 174–181Google Scholar
  83. Zaichkowsky JL (1985) Measuring the involvement construct. J Consum Res 12(3):341–352Google Scholar
  84. Zauberman G, Kim BK, Malkoc SA, Bettman JR (2009) Discounting time and time discounting: Subjective time perception and intertemporal preferences. J Mark Res 46(4):543–556Google Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  • Venkataraghavan Krishnaswamy
    • 1
  • R. P. Sundarraj
    • 2
    Email author
  1. 1.Indian Institute of Management KashipurKashipurIndia
  2. 2.Indian Institute of Technology MadrasChennaiIndia

Personalised recommendations