When the Human Touch Matters - The Role of Service Agent Type in Hedonic Product Recommendations -

As Artificial Intelligence (AI) increasingly integrates into service domains, this research investigates the influence of the type of service agent―human vs. AI―on consumer responses to product recommendations, with a specific focus on high-touch, hedonic experiences. Across two experimental studies, we examine how the type of service agent (human vs. AI) affects consumers' purchase intentions of a recommended product by focusing on the mediating role of perceived expertise and the moderating influence of individual technology readiness. In Study 1, participants exposed to a hedonic product recommendation (wine pairing) perceived human agent as more expert than AI agent, resulting in higher purchase intentions. In Study 2, using Technology Readiness Index (TRI), the two distinctive consumer groups were identified (“motivator” vs. “inhibitor”). Depending on participants’ TR segments, they showed different responses toward the human (vs. AI) service agents. This research underscores that human agent remain effective in service contexts where perceived expertise and consumers' technology readiness jointly shape decision-making. This study illuminates how service design can be strategically informed to enhance market efficiency and contribute to consumer welfare.