Artificial intelligence (AI) in the context of customer service, we define as a technology-enabled system for evaluating real-time service scenarios using data collected from digital and/or physical sources in order to provide personalised recommendations, alternatives, and solutions to customers’ enquiries or problems, even very complex ones. We examined, in a banking services context, whether consumers preferred AI or Human online customer service applications using an experimental design across three field-based experiments. The results show that, in the case of low-complexity tasks, consumers considered the problem-solving ability of AI to be greater than that of human customer service and were more likely to use AI while, conversely, for high-complexity tasks, they viewed human customer service as superior and were more likely to use it than AI. Moreover, we found that perceived problem-solving ability mediated the effects of customers’ service usage intentions (i.e., their preference for AI vs. Human) with task complexity serving as a boundary condition. Here we discuss our research and the results and conclude by offering practical suggestions for banks seeking to reach customers and engage with them more effectively by leveraging the distinctive features of AI customer service.

Purpose This paper aims to investigate how location-based advertising (LBA) elicits in-store purchase intention. To deepen the understanding of LBA’s effect on consumers’ purchase decision, the research examines the role of consumers’ time consciousness in click intention in pull or opt-out LBA approaches. The study also explores how consumers react to LBA with an asymmetric dominance decoy versus a compromise decoy message. Design/methodology/approach Two field experiments were conducted, and a total of 363 volunteers within 3 km of a shopping mall participated. The participants were asked to turn on their global positioning system and then informed that a convenience store was planning to launch a mobile coupon subscription service. Data collected were analysed using analysis of variance, regression analysis, bootstrapping and spotlight tests. Findings The results demonstrate that consumers had a higher intention to click pull LBA than to click opt-out push LBA. Consumers with high time-consciousness had greater click intentions for pull LBA than for opt-out push LBA. Consumers with low time-consciousness, however, showed no difference in click intention for either LBA approach. Further, click intention mediates the effect of LBA on in-store purchase intention, and the asymmetric dominance decoy message is a more powerful strategy for LBA to increase the likelihood of in-store purchase. Originality/value This research provides insight into location-based services marketing by revealing how time-consciousness and decoy promotional messages affect consumers’ reaction to LBA and in-store purchase intentions. The findings offer practical suggestions for retailers on how to reach and engage with consumers more effectively through the use of LBA.

Purpose This study aims to understand the underlying mechanism and boundary conditions of the IKEA effect in self-expressive mass customization (MC). It examines the effect of the extent of choice in MC toolkits in terms of perceived value of self-designed products, as well as how self-expression mediates this effect and what kind of consumers are more inclined to experience such effect. Design/methodology/approach Two experiments were conducted, using online MC toolkits. In total, 393 consumers participated in the experiments. Data collected were analyzed using t-tests, analyses of variance, path analyses, bootstrap analyses and spotlight tests. Findings The results show that offering a greater extent of choice in MC toolkits to consumers provides a greater opportunity for self-expression, resulting in higher product valuation. Further, consumers who have high romanticism in aesthetic preference and high self-esteem are more inclined to influences associated with this effect. Originality/value This research adds to the literature on the IKEA effect in self-expressive MC by identifying a key antecedent (extent of choice), its underlying mechanism (self-expression), and two boundary conditions (aesthetic preference and self-esteem). The results of this study provide firms with a better understanding of how they can improve their self-expressive MC strategies.

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This research investigates the placebo effects of price and brand on consumer judgment and focuses on how two psychological moderators, deliberation thinking and self-confidence, influence the placebo-like effects. Two experiments were conducted. The results show that although different prices and brands on the same product would not influence consumers’ taste evaluation, they would affect participants’ grades in the memory test. That means there is a placebo effect on price/brand cues. The results also indicate that the placebo effect of price is more influenced by the discounted price than the regular price when people have low deliberation thinking. Furthermore, the findings show that the effects of brand and self-confidence create an interaction effect. Self-confidence moderates the placebo effect of brand on consumers’ judgment. Theoretical and managerial implications of the findings are provided