When to Showcase Automated Production Processes? Disclosing Production Processes Increases Evaluation of Low‐End but Decreases Evaluation of High‐End Products

ABSTRACT In this information age, consumers can easily learn about the production process for thousands of products, ranging from low‐end options like budget‐friendly pasta and candy to high‐end alternatives, such as gourmet versions of those same items. Despite the increasing prevalence of marketing practices that display automated production processes (e.g., plant tours, online videos, ads, showcases), there is little research on the effect of this practice. We found that it is not always beneficial for consumers to know that a product is produced through automated manufacturing, contrary to what many managers may expect. This paper explores when and why marketers should disclose automated production processes to consumers. Specifically, we found that disclosing automated production process may have opposite effects based on the product's positioning. Through a preliminary survey, two pilot studies, and eight studies, we found that disclosing the automated production process enhances the evaluation of low‐end products by increasing perceived product function, while it negatively impacts the evaluation of high‐end products by reducing perceived product image. We further examined the boundary conditions for the proposed effect. Notably, the negative impact on high‐end products is not observed when the production process is emphasized as handmade (rather than automation), when the product's country of origin is highlighted, or when the product involves advanced technology. Our findings draw attention to the downsides of the automation process. Additionally, this research helps companies to manage the communication of production methods to consumers strategically.