Current Issue

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

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 (

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

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 ▼


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


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

1. Abelson, Robert (1964), “The Choice of Choice Theories” in Decision and Choice eds. S. Messick and A. Bray-field, New York: McGraw-Hill
2. Andreasen, A. R. (1968), “Attitudes and customer behavior: A decision model,” In H. H. Kassarjian, and T. S. Robertson (Eds.), Perspectives in consumer behavior (pp.498-510). Glenview, IL: Scott, Foresman and Company.
3. Andrews, J. C., Netemeyer, R. G., and Burton S. (1998), “Consumer Generalization of Nutrient Content Claims in Advertising,” Journal of Marketing, 62(4), pp.62-75.
4. Arndt, Johan (1967), “Role of Product-related Conversations in the Diffusion of a New Product,” Journal of Marketing Research, 4(3), pp. 291-295
5. Bearden, W. O., & Etzel, M. J. (1982), “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research, 9(2), pp.183-194
6. Bell, David E. (1982), “Regret in Decision Making Under Uncertainty,” Operations Research, 30(5), pp.961-981.
7. Berger, J. Michael, D., and Itamar, S. (2007), “The Influence of Product Variety on Brand Perception and Choice,” Marketing Science, 26(4), pp.460-472.
8. Brown, Jacqueline Johnson and Peter H. Reingen (1987), “Social Ties and Word-of-Mouth Referral Behavior,” Journal of Consumer Research, 14 (December), pp.350-362.
9. Calogero, R. M., Bardi, A., and Sutton, R. M. (2009), “A need Basis for Values: Associations between the Need for Cognitive Closure and Value Priorities,” Personality and Individual Differences, 46(2), pp.154-159.
10. Chandon, P., and Wansink, B. (2007), “The Biasing Health Halos of Fast-food Restaurant Health Claims: Lower Calorie Estimates and Higher Side-dish Consumption Intentions,” Journal of Consumer Research, 34(3), pp.301-314.
11. Chirumbolo, A., S. Livi, L. Mannetti, A. Pierro, and Kruglanski, A. W. (2004), “Effects of Need for Closure on Creativity in Small Group Interactions,” European Journal of Personality, 18(4), pp.265-278.
12. Dhar, Ravi (1997), “Consumer Preference for a No-Choice Option,” The Journal of Consumer Research, 24(2), pp.215-231.
13. Festinger, Leon (1957), A Theory of Cognitive Dissonance, Evanston, IL: Row Peterson.
14. Grada, De Eraldo, Kruglanski, W. Arie, Mannetti, Lucia, and Pierro, Antonio (1999), “Motivated Cognition and Group Interaction: Need for Closure Affects the Contents and Processes of Collective Negotiations,” Journal of Experimental Social Psychology, 35(4), pp. 346-365,
15. Greenleaf, A. Eric and Lehmann, D. (1995), “Reasons for Substantial Delay in Consumer Decision Making,” Journal of Consumer Research, 22 (2), 186-199.
16. Ha, H. H., Ahn, S. W., and Ha, Y. W.(2002), “The Effects of Choice Set Size and Composition on Preference for a No-choice Option,” Korean Management Review, 31(1), pp.95-113.
17. Hall, Calvin S. and Lindzey, Gardner (1978), Theories of Personality, New York: John Wiley
18. Hwang, W. H., and Jeon, J. O.(2017), “Consumer’s Response to the Salesperson’s Message Type for Product Recommendation: The Moderating Role of Regulatory Focus and Prior Knowledge,” Journal of Marketing Studies, 25(2), pp.119-141.
19. Helson, H. (1964), Adaptation Level Theory: An Experimental and systematic Approach to Behavior, Harper and Row, New York.
20. Houghton, C. David, and Grewal, Rajdeep (2000), “Please, Let's Get an Answer—Any Answer: Need for Consumer Cognitive Closure,” Psychology & Marketing, 17(11), pp.911-934.
21. Hsee, C. K. and Weber, E. U. (1999), “Cross-national Differences in Risk Preference and Lay Predictions,” Journal of Behavior Decision Making, 12(2), pp.165-179.
22. Itamar Simonson(1989), “Choice Based on Reasons: The Case of Attraction and Compromise Effects,” Journal of Consumer Research, 16 (2), pp.158-174.
23. Iyengar, Sheena S., Gur Huberman, and Wei Jiang (2004), How Much Choice Is Too Much? Contributions to 401(k) Retirement Plans, in Pension Design and Structure: New Lessons from Behavioral Finance, ed. Olivia S. Mitchell and Stephen P. Utkus, Oxford: Oxford University Press, pp.83-95.
24. Janiszewski, C., and Lichtenstein, R. D. (1999), “A Range Theory Account of Price Perception,” Journal of Consumer Research, 25(March), pp.353-368.
25. Kruglanski, W. Arie, and Webster, D. M. (1996), “Motivated Closing of the Mind: “Seizing” and “Freezing,” Psychological Review, 103 (2), pp.263-283.
26. Lee, H. S., and Kim, J. H. (2007), “The Placebo Effect of a Brand Modifier: Moderating Roles of Product Involvement and Knowledge,” Korean Journal of Marketing, 22(4), pp. 85-113.
27. Lee, J. H., and Kim, M. H.(2004), “The Influence of Need for Closure on Consumer's Purchase Response in Store,” Korean Journal of Marketing Management, 9(2), pp.49-76.
28. Lee, W. J., Shimizu, M., Kniffin, K. M., and Wansink, B. (2013), “You Taste What You See: Do Organic Labels Bias Taste Perceptions?” Food Quality and Preference, 29(1), pp.33-39.
29. Lichtenstein, S. and Slovic, P. (1971) “Reversals of Preference Between Bids and Choices in Gambling Situations,” Journal of Experimental Psychology, 89(1), pp.46-55.
30. Malhotra, Naresh K. (1982), “Information Load and Consume Decision Making,” Journal of Consumer Research, 8(4), pp.419-430.
31. Mayseless, O. and Kruglanski, W, A. (1987), “What Makes You so Sure? Effects of Epistemic Motivations on Judgmental Confidence,” Organizational Behavior and Human Decision Processes, 39(2), pp.162-183.
32. Nowlis, S. M. and Simonson, I. (1997), “Attribute-task Compatibility as a Determinant of Consumer Preference Reversals,” Journal of Marketing Research, 34(2), pp.205-218.
33. Parducci, A. (1965), “Category Judgment: A Range-Frequency Model,” Psychological Review, 72 (6), pp.407-418.
34. Park, J. H., Cho, Y. H., and Kim, J. K.(2009), “Social Network; A Novel Approach to New Customer Recommendations,” Journal of Intelligence and Information Systems, 15 (1), pp.123-139.
35. Ratneshwar, S., and Chaiken, S. (1991), “Comprehension's Role in Persuasion: The Case of its Moderating Effect on the Persuasive Impact of Source Cues,” Journal of Consumer Research, 18(1), pp.52-62.
36. Reibstein, David J., Stuart A. Youngblood, and Fromkin, L. Howard (1975), “Number of Choices and Perceived Decision Freedom as a Determinant of Satisfaction and Consumer Behavior,” Journal of Applied Psychology, 60(4), pp.434-437.
37. Reingen, Peter H. and Kernan, B. Jerome (1986), “Analysis of Referral Networks in Marketing: Methods and Illustration,” Journal of Marketing Research, 23(4), pp.370-378.
38. Richins, Marsha L. (1983), “Negative Word-of-Mouth by Dissatisfied Consumers: A Pilot Study,” Journal of Marketing, 47(1), pp.68-78.
39. Roe, B., Levy, A. S., and Derby, B. M. (1999), “The Impact of Health Claims on C onsumer Search and Product Evaluation Outcomes: Results from FDA Experimental Data,” Journal of Public Policy & Marketing, 18(1), pp.89-105.
40. Rosen, L. Dennis, and Olshavsky, W. Richard(1987), “A Protocol Analysis of Brand Choice Strategies Involving Recommendations,” Journal of Consumer Research, 14(3), pp.440-444.
41. Ryu, G. Y., and Sohn, Y. S.(2013), “Impact of the Number of Choice Alternatives on Choice Deferral: Moderating Effects of Choice Strategy Types and Regulatory Modes in the Case of Mobile Movie Reservation,” Korean Journal of Marketing, 28(4), pp.69-92.
42. Schiffman, G. Leon (1972), “Perceived Risk in New Product Trial by Elderly Consumers,” Journal of Marketing Research, 9(1), pp.106-108..
43. Sen, S., and Lerman, D. (2007), “Why Are You Telling Me This? An Examination into Negative Consumer Reviews on the Web,” Journal of Interactive Marketing, 21(4), pp.76-94.
44. Senecal, Sylvain and Jacques, Nantel (2004), “The Influence of Online Product Recommendations on Consumers’ Online Choices,” Journal of Retailing, 80(2), pp.159-169.
45. Simonson, I. and Tversky, A. (1992), “Choice in Context: Tradeoff Contrast and Extremeness Aversion,” Journal of Marketing Research, 29(3), pp.281-295.
46. Tversky, A., Sattath, S. and Slovic, P. (1988), “Contingent Weighting in Judgment and Choice,” Psychological Review, 95(3), pp. 371-384.
47. Vermeir, I. and P. Van Kenhove (2005), “The Influence of Need for Closure and Perceived Time Pressure on Search Effort for Price and Promotional Information in a Grocery Shopping Context,” Psychology & Marketing, 22(1), pp.71-75.
48. Webster, D. M. & Kruglanski, A. W. (1994), “Individual Differences in Need for Cognitive Closure,” Journal of Personality and Social Psychology, 67(6), pp.1049-1062.
49. Whyte, William H., Jr. (1954), “The Web of Word of Mouth.” Fortune, 50(November), pp.140-143.

∙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.