AI can prevent disclosure sales, according to a new study

AI can prevent disclosure sales, according to a new study

AI can prevent disclosure sales, according to a new study

The findings consistently showed that products labeled “artificial intelligence” were less attractive.

Sales, Study, New York, Artificial Intelligence, Washington State University, WSU, USA, Marketing, Smart Television, Electronics, Medical Devices, Financial Services

New York: Including the term “artificial intelligence” in product descriptions may inadvertently reduce sales, according to a study led by Washington State University (WSU) researchers.

The study, published in the Journal of Hospitality Marketing and Management, surveyed more than 1,000 US adults to examine the impact of AI disclosures on consumer behavior.

According to Mesut Cisek, clinical assistant professor of marketing and lead author of the study, the findings consistently showed that products labeled “artificial intelligence” were less attractive.

“When AI is mentioned, it reduces emotional trust, which, in turn, reduces purchase intent,” Cisek said.

“We found that emotional trust plays a key role in how consumers perceive AI-powered products.”

The study involved presenting participants with descriptions of various products and services, some explicitly mentioning AI and others not. For example, in one experiment, where participants were shown identical descriptions of smart televisions, one group's description included the word “artificial intelligence.” The group exposed to AI mentions were less likely to be interested in purchasing a television. The negative response to AI disclosure was more pronounced for “high-risk” products and services, such as expensive electronics, medical devices or financial services. These are areas where potential failures could lead to significant financial losses or safety issues, making consumers more cautious, according to Cicek.

“We tested the effect in eight different product and service categories and all the results were the same: it is a disadvantage to include such terms in the product description,” he noted.

The study suggests that companies should carefully consider how they introduce AI into their marketing. “Marketers should focus on describing features or benefits and avoid AI buzzwords, especially for high-risk products,” advises Cicek.




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