AI (vs. Human) Recommendation on Luxury Services

Gonçalves, Ana Rita; Pinto, Diego Costa; Shuqair, Saleh; Imanbay, Anel; Mattila, Anna S.

http://hdl.handle.net/10362/165840

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Resumo(s)

Despite Artificial Intelligence (AI)'s emerging trend in luxury services, recent research shows mixed findings regarding its impact. This paper builds upon the optimum distinctiveness theory and the need for uniqueness to examine AI's effects on consumers’ willingness to accept luxury suggestions. Four studies reveal that using AI recommendations in the luxury sector reduces consumers’ differentiation, which has downstream effects on luxury services and causes brand dilution. Findings further indicate that when specific characteristics of luxury, such as uniqueness, are enhanced, it damages consumers’ willingness to accept luxury recommendations, and thus, AI backfires. The study findings have important theoretical and managerial implications, suggesting when AI should be used to provide recommendations for luxury experiences.

Descrição

Gonçalves, A. R., Pinto, D. C., Shuqair, S., Imanbay, A., & Mattila, A. S. (2024). AI (vs. Human) Recommendation on Luxury Services. In V. Jeseo, & J. Allen (Eds.), Bringing the Soul Back to Marketing: Proceedings of the 2023 AMS World Marketing Congress, Canterbury, UK, July 11–14, 2023 (pp. 121-131). (Developments in Marketing Science: Proceedings of the Academy of Marketing Science). Springer Nature Switzerland AG. https://doi.org/10.1007/978-3-031-53286-3_12 --- This work received partial support from national funds through FCT (Fundação para a Ciência e a Tecnologia), under the projects - UIDB/04152/2020, DSAIPA/DS/0113/2019 - Centro de Investigação em Gestão de Informação (MagIC)/NOVA IMS.