The AI-extended consumer: Technology, consumer, country differences in the formation of demand for AI-empowered consumer products

Abstract

Recent advances in artificial intelligence (AI) are set to revolutionize established industries. Drawing on delegation theory, this article extends the marketing literature by explaining technology, consumer, and country differences in the formation of demand for AI-empowered consumer products (AI products). Based on hierarchical linear modeling of 2,775 consumer evaluations of automobile add-on autonomous driving systems across five countries, this study finds that the utilitarian (related to efficient goal achievement), hedonic (related to emotions), and symbolic (related to the consumer's self-concept) dimensions of perceived value all contribute substantially to AI product demand. Regarding technology differences, the degree of AI product autonomy enhances the effects of both hedonic and symbolic value and weakens the effect of utilitarian value on AI product demand. Regarding country differences, cultural performance orientation enhances the effect of utilitarian value on AI product demand. Regarding consumer differences, a consumer's independent self-construal weakens the effects of hedonic and symbolic value. Moreover, a consumer's inherent activeness weakens the effect of utilitarian value and strengthens the effect of symbolic value on AI product demand. Based on these results, the article discusses implications for marketing scholars and practitioners and for public policy-makers.