Automation versus Experiences: The value of (im)perfection delivered by human versus automated agents

• Applicant: Dr. Sven Feurer
• Subject Area: Accounting and Finance
• Term: Funded in 2019
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 418467733

Today's marketplaces are characterized by two macro trends: Automation (i.e., technology aiming to operate or control processes while reducing human intervention to a minimum) and experiential buying (i.e., purchases made with the primary intention of acquiring a life experience rather than a materialistic possession). However, it is unclear how these two trends will play out for consumers, and whether they are in fact compatible. Indeed, automation may destroy or alter experiences (e.g., driving on Route 66 with a self-driving Mustang an experience to long for). However, to date, no research examines the impact automation has on consumers' experiences. The research proposed here seeks to address this general research gap. Specifically, this research seeks to illuminate the role of perfection or imperfection in a performance (product, service, etc.) for the experiential value as perceived by consumers, and whether this role differs depending on whether the performance is delivered by a human versus an automated agent (e.g., a robot). As such, several predictions are made: Firstly, consumers will apply different standards of what is perceived a “perfectly” carried out task is, depending on whether it is delivered by a human or an automated agent. Secondly, it is proposed that imperfection delivered by an automated agent triggers more negative reactions than imperfection delivered by a human. Thirdly, the proposed effects are expected to be moderated by performance characteristics (e.g., slight imperfection as opposed to complete failures); situational characteristics (high versus low experience value), consumer characteristics (e.g., nostalgia, tech-savvyness, innovativeness), and agent characteristics (e.g., anthropomorphism). The present research seeks to empirically test these propositions in a series of randomized experiments. Together with Kelly Haws and Steve Hoeffler of Vanderbilt University, who both are leading scholars in their respective fields of consumer behavior (Haws) and innovation (Hoeffler), I will be in an outstanding position to research these issues and derive implications for consumers and managers. Personally, this research has the potential to become published in a top-tier marketing journal and thus bring me closer to my goal of becoming a professor of marketing/innovation in Germany.

• DFG Programme: Research Fellowships
• International Connection: USA
• Hosts: Professorin Kelly Haws; Professor Steve Hoeffler, Ph.D.