Abstract
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.
| Original language | English |
|---|---|
| Publication status | Accepted/In press - 19 Jan 2023 |
| Event | 24th AMS World Marketing Congress (Academy of Marketing Science) - University of Kent, Canterbury, United Kingdom Duration: 11 Jul 2023 → 14 Jul 2023 Conference number: 24 https://www.ams-web.org/events/EventDetails.aspx?id=1330563&group= |
Conference
| Conference | 24th AMS World Marketing Congress (Academy of Marketing Science) |
|---|---|
| Abbreviated title | 24TH AMS WMC |
| Country/Territory | United Kingdom |
| City | Canterbury |
| Period | 11/07/23 → 14/07/23 |
| Internet address |
Keywords
- artificial intelligence
- luxury
- ecommendation
- services
- differentiation