Posted: May 23rd, 2022

Human-robot intimate relationships

 

 

 

 

 

 

 

 

 

 

 

How Artificial Intelligence Impacts the Psychology of Consumers

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The digital age has made monumental shifts and strides in technology use and innovations over a significantly short time. The business world today has experienced a significant shift in technology advancement through the use of artificial intelligence. One of the technological advancements that have changed the world is the use of artificial intelligence, which has impacted many organizations and the marketplace is artificial intelligence. Artificial intelligence (AI) is a trend in the digital age of computer sciences that has enabled technology to have certain human behaviors, such as the brain system found in the human nervous system. AI has a positive relation to consumer behavior and psychology (Mariani et al., 2018). Human psychology has adopted AI functions in consumer behavior hence making it easier for marketing and sales of services and products.

Artificial intelligence has affected the psychology of consumers in various ways. First, AI can take the form of a computerized system or a working robot. Ben-Ari and Mondada (2018) define a robot as a machine that is programmable by a computer to carry out complex works and actions spontaneously. Physical robots as part of AI are used in organizations for marketing products and services, thus enabling companies to thrive when using the new technological advancement platform. AI has the capabilities to be used in marketing through companies having physical robots, also known as companion robots.

The robots used in marketing products and services influence consumers psychologically when they share physical space with people in malls or shopping areas. The closeness that robots have with consumers removes barriers and thus improves customer interactions and possibly the purchase of products. These sales robots influence consumers by enticing them to consider purchasing the products and also creating a personal rapport with them because of the physical embodiment. AI robots such as Harmony from Realbotix Company help in marketing products as they share physical proximity with people devoid of any defensive barriers (Cheok & Zhang, 2019). Therefore, through robot marketing, there is improved marketing and customer interaction. Consumers often have a more real and close bond with physical robots than the AI chat robots, which do not have any physical embodiment. Also, these AI robots indicate a potential ability to reciprocity conventional perceptions, as seen when consumers build a more positive attitude toward robots that ask them to buy products. Consumers would find robots marketing children’s products interesting and likeable, which may lead to increased influence on buying the products.

Similarly, AI through sales or service robots has shown that there is a psychological impact that is evident through consumer perceptions. Robots create reciprocity of perceptions, more so when interacting with children target groups who consider them interesting and engaging. For instance, consumers find Chatbots and AI virtual assistants to be significant in helping them have intelligent conversations on various products. The AI assistants and Chatbots are agents that help enhance marketing, sales and interactions with consumers through texts or audio methods. Also, one may find that home robot, which are also referred to as service robots, are used to do household chores, for instance iRobot’s Roomba (Prassler et al., 2016). Therefore, AI has impacted consumers either online or physically to have perceptions that determine the consumers purchasing behavior.

AI comes with the issue of human data and its ethical issue of it. Despite the fact that the technological tool has been used in computer games, natural language, and Robotics like Replika. Consumers often purchase products or services after forecasting by AI on computers, phones and other gadgets. Artificial intelligence has been used to assist organizations in forecasting the needs, preferences and desires of consumers online. The forecasting seeks to influence potential consumers to order and make purchases online. It is evident that most online purchases are psychologically determined, especially where forecasting of needs and wants of consumers are done.

Agrawal et al. (2019) explain how today, companies have invested in computerized machines that can use human intelligence and capabilities to do marketing through forecasting predictions using certain algorithm patterns. The authors illustrate that through AI algorithms, companies or services such as Birchbox may have enhanced predictive ability for products and services that consumers may prefer according to their data. Therefore, predictive ability using AI impacts positively or adversely potential consumers.

Predictive processes that attain high levels of accuracy by AI often cause organizations to realize profits and increased sales. However, a reduced accuracy would necessitate an adjustment and change of the AI marketing strategies and models that will provide accurate and conscience prediction purchase outcomes. Nonetheless, there is the issue of ethics when using AI in forecasting consumer needs and preferences. When data is used by companies without the knowledge of the individual, there is a concern about how legal the AI forecasting issue is in regards to ethical considerations.

Davenport et al. (2020) explain how sales will be used significantly through artificial intelligence bots to automate the sales process similarly and more enhanced than sales teams. A good example is Conversica, a cloud software tech firm that provides AI-driven consumer conversational marketing and engagement through its software. More often than not, consumers may not be aware that they are engaging with robots online and not sales teams. Moreover, AI will help in making predictions using algorithms on the prices of goods and services to be sold to consumers. The authors discuss how AI is expected to be a significant player in forecasting the prices to charge and if the price promotional strategies are offered. Marketing thrives when price and price promotional strategies are effectively used as sales drivers.

Ai influences consumers psychological through replying to questions and requests of products and services online. MacLachlan et al. (2018) report that in 2016 Microsoft developed Tay in the tech market like an experiment on studying the effects of artificial intelligence and human psychology. The experiment was focused on using chatbots in the computer programs to engage online users in purchase, marketing or sales conversations (Neff & Nagy, 2016). Tay was programmed with a different AI algorithm where it successfully replied back to online users messages by selecting the most appropriate answers from pre-programmed schematics, and from emerging bots, through adaptive algorithms.

Milutinovi and Kotlar (2021), note that Alibabas new version of Dian Xiaomi has the ability to understand consumers emotions, make choices or suggestions and request human customer service representative to intervene. Through this the computer system engages and understands questions in a similar way like a human brain system. Future robots may be improved to display increased trustworthiness and appeal to users. For example, future robots can be designed to be more reliable and honest in conversations than human beings thus psychologically influencing consumers. Chatbots like Tay succeeded in showing the potential in having timely conversations with users online even though the robots experience difficulties when interacting with human beings in some areas (Seeber et al., 2020). The Chatbots using AI fall short in various human aspects such as emotional connection where feelings, thoughts and intelligence, lack. Researchers are optimistic that in future the deficiencies will be addressed successfully.

Therefore using AI robots, both the physical and Chatbots have significant influence on the psychology of consumers. AI has succeeded in making great strides in the global business world where marketing, sales and consumer interactions have been enhanced. Artificial intelligence has proven that technological advancement is geared towards ensuring businesses engage with consumers effectively and influences them physiologically to make purchases. AI already has some significant impacts on sales, customer interaction and marketing, it is highly expected that there will be substantially more effects in the future. Hence, there is more for organizations to experiment.

 

 

References

Agrawal, A., Gans, J., & Goldfarb, A. (2019). Economic policy for artificial intelligence.Innovation Policy and the Economy,19(1), 139-159.

Ben-Ari, M., & Mondada, F. (2018). Robots and their applications. InElements of robotics(pp. 1-20). Springer, Cham.

Cheok, A. D., & Zhang, E. Y. (2019).Human-robot intimate relationships(pp. 23-32). Springer.

Davenport, T., Guha, A., Grewal, D., & Bressgott, T. (2020). How artificial intelligence will change the future of marketing.Journal of the Academy of Marketing Science,48(1), 24-42.

MacLachlan, M., Banes, D., Bell, D., Borg, J., Donnelly, B., Fembek, M., … & Hooks, H. (2018). Assistive technology policy: a position paper from the first global research, innovation, and education on assistive technology (GREAT) summit.Disability and Rehabilitation: Assistive Technology,13(5), 454-466.

Mariani, M. M., PerezVega, R., & Wirtz, J. (2022). AI in marketing, consumer research and psychology: A systematic literature review and research agenda.Psychology & Marketing,39(4), 755-776.

Milutinovi,V., & Kotlar,M. (2021).Handbook of Research on Methodologies and Applications of Supercomputing. Hershey: IGI Global.

Neff, G., & Nagy, P. (2016). Automation, algorithms, and politics| talking to Bots: Symbiotic agency and the case of Tay.International Journal of Communication,10, 17.

Prassler, E., Munich, M. E., Pirjanian, P., & Kosuge, K. (2016). Domestic robotics. InSpringer handbook of robotics(pp. 1729-1758). Springer, Cham.

Seeber, I., Waizenegger, L., Seidel, S., Morana, S., Benbasat, I., & Lowry, P. B. (2020). Collaborating with technology-based autonomous agents: Issues and research opportunities.Internet Research.

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