Using the term “artificial intelligence” in product descriptions reduces purchase intent

AI and advertising

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Companies may be unintentionally hurting their sales by including the words “artificial intelligence” in the descriptions of their offerings that use the technology, according to a study by researchers at Washington State University.

In the study, published in the Journal of Hospitality Marketing and ManagementThe researchers conducted experimental surveys of more than 1,000 adults in the United States to assess the relationship between AI disclosure and consumer behavior.

The results consistently showed that products described as using artificial intelligence were less popular, said Mesut Cicek, clinical assistant professor of marketing and lead author of the study.

“When you talk about AI, you tend to decrease emotional trust, which in turn decreases purchase intentions,” he said. “We found that emotional trust plays a critical role in how consumers perceive AI-powered products.”

In the experiments, the researchers included questions and descriptions about various categories of products and services. For example, in one experiment, participants were given identical descriptions of smart TVs, with the only difference being that the term “artificial intelligence” was included for one group and omitted for the other. The group that saw AI included in the product description reported being less likely to purchase the TV.

The researchers also found that the negative response to AI disclosure was even stronger for “high-risk” products and services—those that people typically feel more uncertain or anxious about purchasing, such as expensive electronics, medical devices, or financial services.

Because failure carries more potential risks, which can include financial loss or physical safety hazards, mentioning AI in these types of descriptions can make consumers more wary and less likely to purchase, Cicek said.

“We tested the effect on eight different categories of products and services, and the results were all the same: It’s a disadvantage to include these kinds of terms in product descriptions,” Cicek said.

Cicek said the findings provide valuable information for businesses.

“Marketers should carefully consider how they present AI in their product descriptions or develop strategies to build emotional trust. Emphasizing AI is not always beneficial, especially for high-risk products. Focus on describing features or benefits and avoid AI-related buzzwords,” he said.

In addition to Cicek, the study included co-authors Dogan Gursoy, a professor of hospitality at WSU, and Lu Lu, an associate professor at Temple University’s Fox School of Business and Management.

More information:
Mesut Cicek et al, Negative impacts of revealing the presence of “Artificial Intelligence (AI)” technology in product and service descriptions on purchase intentions: the mediating role of emotional trust and the moderating role of perceived risk, Journal of Hospitality Marketing and Management (2024). DOI: 10.1080/19368623.2024.2368040

Provided by Washington State University


Quote:Use of term ‘artificial intelligence’ in product descriptions reduces purchase intentions (July 30, 2024) retrieved July 30, 2024 from https://phys.org/news/2024-07-term-artificial-intelligence-product-descriptions.html

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