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How artificial intelligence will change the future of marketing
In the future, artificial intelligence (AI) is likely to substantially change both marketing strategies and customer behaviors. Building from not only extant research but also extensive interactions with practice, the authors propose a multidimensional framework for understanding the impact of AI involving intelligence levels, task types, and whether AI is embedded in a robot. Prior research typically addresses a subset of these dimensions; this paper integrates all three into a single framework. Next, the authors propose a research agenda that addresses not only how marketing strategies and customer behaviors will change in the future, but also highlights important policy questions relating to privacy, bias and ethics. Finally, the authors suggest AI will be more effective if it augments (rather than replaces) human managers.
Journal Article
Service Robots Rising
Interactions between consumers and humanoid service robots (HSRs; i.e., robots with a human-like morphology such as a face, arms, and legs) will soon be part of routine marketplace experiences. It is unclear, however, whether these humanoid robots (compared with human employees) will trigger positive or negative consequences for consumers and companies. Seven experimental studies reveal that consumers display compensatory responses when they interact with an HSR rather than a human employee (e.g., they favor purchasing status goods, seek social affiliation, and order and eat more food). The authors investigate the underlying process driving these effects, and they find that HSRs elicit greater consumer discomfort (i.e., eeriness and a threat to human identity), which in turn results in the enhancement of compensatory consumption. Moreover, this research identifies boundary conditions of the effects such that the compensatory responses that HSRs elicit are (1) mitigated when consumer-perceived social belongingness is high, (2) attenuated when food is perceived as more healthful, and (3) buffered when the robot is machinized (rather than anthropomorphized).
Journal Article
Impulse buying: a meta-analytic review
Impulse buying by consumers has received considerable attention in consumer research. The phenomenon is interesting because it is not only prompted by a variety of internal psychological factors but also influenced by external, market-related stimuli. The meta-analysis reported in this article integrates findings from 231 samples and more than 75,000 consumers to extend understanding of the relationship between impulse buying and its determinants, associated with several internal and external factors. Traits (e.g., sensation-seeking, impulse buying tendency), motives (e.g., utilitarian, hedonic), consumer resources (e.g., time, money), and marketing stimuli emerge as key triggers of impulse buying. Consumers’ self-control and mood states mediate and explain the affective and cognitive psychological processes associated with impulse buying. By establishing these pathways and processes, this study helps clarify factors contributing to impulse buying and the role of factors in resisting such impulses. It also explains the inconsistent findings in prior research by highlighting the context-dependency of various determinants. Specifically, the results of a moderator analysis indicate that the impacts of many determinants depend on the consumption context (e.g., product’s identity expression, price level in the industry).
Journal Article
The future of in-store technology
This paper introduces a conceptual framework for understanding new and futuristic in-store technology infusions. First, we develop a 2 × 2 typology of different innovative and futuristic technologies focusing on their level of convenience and social presence for the consumer. Next, we offer a series of propositions based on the idea that convenience and social presence can trigger vividness by enhancing consumer involvement, imagery, and elaboration, which ultimately leads to enhanced sales. Finally, the paper then focuses on four moderating areas—consumer traits, product/service dimensions, mental models and social networks—to understand how they might impact the vividness experienced via the technology.
Journal Article
Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness
•Personalization leads to greater click-through when firms use overt data collection.•Covert methods increase customer vulnerability resulting in lower click-through.•Negative outcomes can be mitigated by posting ads on trusted websites.•Signaling trust through information icons can also offset this negative effect.
Retailers gather data about customers’ online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers’ sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.
Journal Article
Cutting through Content Clutter
Consumer-to-consumer brand message sharing is pivotal for effective social media marketing. Even as companies join social media conversations and generate millions of brand messages, it remains unclear what, how, and when brand messages stand out and prompt sharing by consumers. With a conceptual extension of speech act theory, this study offers a granular assessment of brands’ message intentions (i.e., assertive, expressive, or directive) and the effects on consumer sharing. A text mining study of more than two years of Facebook posts and Twitter tweets by well-known consumer brands empirically demonstrates the impacts of distinct message intentions on consumers’ message sharing. Specifically, the use of rhetorical styles (alliteration and repetitions) and cross-message compositions enhance consumer message sharing. As a further extension, an image-based study demonstrates that the presence of visuals, or so-called image acts, increases the ability to account for message sharing. The findings explicate brand message sharing by consumers and thus offer guidance to content managers for developing more effective conversational strategies in social media marketing.
Journal Article
Face Forward
Confronted with increasing digitalization, service firms are challenged to sustain customer loyalty. A promising means to do so is to leverage the digital presence of service employees on their website. A large-scale field study and several experimental studies show that the digital presence of service employees on the firm website increases current website service quality perceptions and positively shapes memories related to employee service quality perceptions from past service encounters. Both effects indirectly increase customer loyalty and, in turn, financial performance, and are amplified by employee accessibility and a service firm's customer orientation. The authors examine further boundary conditions for the memory process: only service employees evoke the beneficial spillover effect to employee service quality perceptions, and the spillover effect does not generalize to evaluations of product quality. Remarkably, an employee's digital presence, although factually unrelated, augments customer perceptions of service employees' competence and commitment and thus strengthens rather than erodes service employees' role in customer–firm relationships. Theoretical and managerial implications deepen the understanding of how to add a human touch to digital channels.
Journal Article
Fix It or Leave It? Customer Recovery from Self-service Technology Failures
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► This study investigates the process by which customers recover from SST failures on their own (i.e., customer recovery). ► Our model is based on expectancy and attribution theories and tested by tracking responses to failures in computer-based experiments. ► Internal attribution, perceived control over SST, and SST interactivity all positively influence customer-recovery expectancy. ► Expectancy affects customers’ recovery effort and recovery strategies, depending on the availability of competitive information. ► Recovery effort increases the likelihood of staying with an SST, whereas recovery strategies increase the likelihood of switching.
Self-service technologies (SSTs), such as airport check-in kiosks, can provide customers faster, better, and less expensive services. Yet sometimes customers experience service failures with these technologies. This study investigates the process by which customers recover from SST failures using their own effort (i.e., customer recovery) and explores their decisions to stay with or switch from the SST. Drawing from expectancy and attribution theories, we develop a process model centered on customer-recovery expectancy and test the model by tracking actual failure responses. The results show that internal attribution, perceived control over the SST, and SST interactivity all positively influence customer-recovery expectancy. In turn, expectancy affects customers’ recovery effort and recovery strategies, depending on the availability of competitive information. Furthermore, greater recovery effort increases the likelihood of staying with an SST, whereas more recovery strategies increase the likelihood of switching. The theoretical and managerial implications of these findings include ways to design SSTs to enhance recovery expectancy, a key mechanism of the recovery process, and thus to encourage customers to persist with the technologies.
Journal Article