Avatars are lifelike characters created by technology. Research suggests that avatars can increase the persuasiveness of online sales channels. The authors investigate how the social cues inherent in avatars influence consumers' affect and shopping value. In Study 1, social cues induce perceptions of Web site socialness, leading to increased pleasure and arousal, both of which positively influence flow, hedonic and utilitarian value, and patronage intentions. Study 2 finds that social cue-induced arousal leads to increased pleasure only for consumers who are involved with the product category. Moreover, the influence of arousal on hedonic value is stronger for women, flow does not lead to pleasure for older consumers, and utilitarian value is less important for this group than for their younger counterparts. The findings suggest that there is a competitive advantage for online retailers that use social cues that provide consumers with enhanced perceptions of human connection and the formation of emotional bonds.

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