AI (vs. Human) Recommendation on Luxury Services

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

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 languageEnglish
Title of host publicationBringing the Soul Back to Marketing
Subtitle of host publicationProceedings of the 2023 AMS World Marketing Congress, Canterbury, UK, July 11–14, 2023
EditorsVincent Jeseo, Juliann Allen
Place of PublicationCham, Switzerland
PublisherSpringer Nature Switzerland AG
Pages121-131
Number of pages11
ISBN (Electronic)978-3-031-53286-3
ISBN (Print)978-3-031-53285-6, 978-3-031-53288-7
DOIs
Publication statusPublished - 16 Mar 2024
Event24th AMS World Marketing Congress (Academy of Marketing Science) - University of Kent, Canterbury, United Kingdom
Duration: 11 Jul 202314 Jul 2023
Conference number: 24
https://www.ams-web.org/events/EventDetails.aspx?id=1330563&group=

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
PublisherSpringer Nature Switzerland AG
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

Conference

Conference24th AMS World Marketing Congress (Academy of Marketing Science)
Abbreviated title24TH AMS WMC
Country/TerritoryUnited Kingdom
CityCanterbury
Period11/07/2314/07/23
Internet address

Keywords

  • Artificial intelligence
  • Differentiation
  • Luxury
  • Recommendation
  • Services

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