AI (vs. Human) Recommendation on Luxury Services

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

Research output: Chapter in Book/Report/Conference proceedingChapter

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 (US)
Title of host publicationDevelopments in Marketing Science
Subtitle of host publicationProceedings of the Academy of Marketing Science
PublisherSpringer Nature
Pages121-131
Number of pages11
DOIs
StatePublished - 2024

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
VolumePart F2435
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Marketing

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