Value destruction: the ugly side of virtual agents

Purpose This paper aims to examine the outcomes of consumers’ perceptions of value destruction resulting from interaction with virtual agents. Specifically, outcomes such as consumer outrage, virtual agent hate, reduction in the share of wallet and desire for revenge are explored. Design/methodology/approach Data was collected from 390 Gen Z users of virtual agents in Egypt and the United Arab Emirates, and analysed using SPSS AMOS 29. Findings This paper demonstrates the adverse consumer outcomes of value destruction. In addition, the paper uncovers a novel relationship related to the serial mediation of consumer outrage and virtual agent hate between value destruction on the one hand and reduction in the share of wallet and desire for revenge on the other hand. Practical implications This paper also provides guidelines to firms using virtual agent to better understand the negative outcomes that could result from interaction with virtual agents. Understanding consumer evaluation of the value of virtual agents will likely guide future investment decisions in virtual agents. Originality/value To the best of the authors’ knowledge, this paper is the first to explore the value destruction that might result from interaction with virtual agents, as well as its adverse effects. In addition, the paper uncovers a novel serial relationship related to the process through which value destruction induces consumers’ reduction in their share of wallet and desire for revenge.