[ExI] Advertising AI is bad for marketing
Stuart LaForge
avant at sollegro.com
Wed Jul 31 19:12:51 UTC 2024
According to this study, using the term AI or artificial intelligence in
a product description makes people less likely to buy the product even
for technological devices. The study found that people emotionally
distrust AI.
https://news.wsu.edu/press-release/2024/07/30/using-the-term-artificial-intelligence-in-product-descriptions-reduces-purchase-intentions/
--------------Begin excerpt
Companies may unintentionally hurt their sales by including the words
“artificial intelligence” when describing their offerings that use the
technology, according to a study led by Washington State University
researchers.
In the study, published in the Journal of Hospitality Marketing &
Management, researchers conducted experimental surveys with more than
1,000 adults in the U.S. to evaluate the relationship between AI
disclosure and consumer behavior.
The findings consistently showed products described as using artificial
intelligence were less popular, according to Mesut Cicek, clinical
assistant professor of marketing and lead author of the study.
“When AI is mentioned, it tends to lower emotional trust, which in turn
decreases purchase intentions,” he said. “We found emotional trust plays
a critical role in how consumers perceive AI-powered products.”
In the experiments, the researchers included questions and descriptions
across diverse product and service categories. For example, in one
experiment, participants were presented with identical descriptions of
smart televisions, the only difference being the term “artificial
intelligence” was included for one group and omitted for the other. The
group that saw AI included in the product description indicated they
were less likely to purchase the television.
Researchers also discovered that negative response to AI disclosure was
even stronger for “high-risk” products and services, those which people
commonly feel more uncertain or anxious about buying, such as expensive
electronics, medical devices or financial services. Because failure
carries more potential risk, which may include monetary loss or danger
to physical safety, mentioning AI for these types of descriptions may
make consumers more wary and less likely to purchase, according to
Cicek.
“We tested the effect across eight different product and service
categories, and the results were all the same: it’s a disadvantage to
include those kinds of terms in the product descriptions,” Cicek said.
Cicek said the findings provide valuable insights for companies.
“Marketers should carefully consider how they present AI in their
product descriptions or develop strategies to increase emotional trust.
Emphasizing AI may not always be beneficial, particularly for high-risk
products. Focus on describing the features or benefits and avoid the AI
buzzwords,” he said. In addition to Cicek, the study included co-authors
Dogan Gursoy, professor of hospitality at WSU, and Lu Lu, associate
professor at Temple University’s Fox School of Business and Management.
-------------------
So people want smart phones and smart TVs, just not "artifically
intelligent" phones and TVs. That is . . . strange.
Stuart LaForge
More information about the extropy-chat
mailing list