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korean management review - Vol. 50, No. 2

[ Article ]
korean management review - Vol. 50, No. 2, pp.313-329
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2021
Received 18 Apr 2020 Revised 02 Sep 2020 Accepted 16 Sep 2020
DOI: https://doi.org/10.17287/kmr.2021.50.2.313

Consumer’s Choice and Satisfaction on the Product Recommended by Artificial Intelligence: Moderating Effect of the Number of Alternatives and Need for Cognitive Closure
Sang Yun Seo
(First Author) Kyungnam University (syseo@kyungnam.ac.kr)

인공지능의 추천 상품에 대한 소비자의 선택과 만족: 선택대안의 수와 인지적 종결욕구의 조절효과

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.
Funding Information ▼

Abstract

This study intends to examine the effect of artificial intelligence’s recommendation on the product choice of consumers as a new source of information in terms of decision-making problems. The result of experiment using spurious artificial intelligence shows that consumers' choices could be easily distorted and biased by the halo effect of artificial intelligence regardless of its performance. As a result of experiment, more participants selected the target product, and their satisfaction with decision making was higher when the target product was recommended by artificial intelligence which was even spurious. In addition, the larger increase of probability to select the target product was, the larger the number of alternatives. Also, the increase of the probability of choice and satisfaction with the products recommended by AI was greater in the group with high need for cognitive closure compared to the low need for cognitive closure group. The result of this study implies that the consumer's choice can be easily affected or biased by not only personal recommendation but also non-personal recommendation such as artificial intelligence.


Keywords: AI, halo-effect, product recommendation, number of alternatives, need for cognitive closure

Acknowledgments

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2018S1A5A8027767).


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∙The author Sang Yun Seo is working at Kyungnam university as an assistant professor. He graduated and obtained the B.S., M.S., and Ph.D major in marketing from the Department of Business Administration at Kyunghee university. He is interested in the researches about the effect of artificial intelligence on consumer’s decision makings, and consumer’s sentimental analysis based on the text-mining. This work is on the way of this research area.