When young customers co-create value of AI-powered branded app: the mediating role of perceived authenticity
ISSN: 1747-3616
Article publication date: 16 January 2024
Issue publication date: 6 August 2024
Abstract
Purpose
Artificial intelligence (AI) allows the brand to co-create value with young customers through mobile apps. However, as many brands claim that their mobile apps are using the most updated AI technology, young customers face app fatigue and start questioning the authenticity of this touchpoint. This paper aims to study the mediating effect of authenticity for the value co-creation of AI-powered branded applications.
Design/methodology/approach
Drawing from regulatory engagement theory, this study conceptualize authenticity as the key construct in customers’ value experience process, which triggers customer value co-creation. Two scenario-based online experiments are conducted to collect data from 444 young customers. Data analysis is performed using ANOVA and Process Hayes.
Findings
The results reveal that perceived authenticity is an important mediator between media richness (chatbot vs AI text vs augmented reality) and value co-creation. There is no interaction effect of co-brand fit (high vs low) and source endorsement (doctor vs government) on the relationship between media richness and perceived authenticity, whereas injunctive norms (high vs low) strengthen this relationship.
Practical implications
The finding provides insights for marketing managers on engaging young customers suffering from app fatigue. Authenticity holds the key to young customers’ technological perceptions.
Originality/value
This research highlights the importance of perceived authenticity in encouraging young customers to co-create value. Young customers consider authenticity as a motivational force experience that involves customers through the app’s attributes (e.g. media richness) and social standards (e.g. norms), rather than brand factors (e.g. co-brand fit, source endorsement).
Keywords
Acknowledgements
Declarations of interest: The authors report no declarations of interest.
Acknowledgement/Funding sources: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Ethics statement: This research has received ethics approval from RMIT University Ethics Committee (2022-24969-16785).
Conflict of interest: None.
Data availability statement: Available upon request.
Citation
Vo, D.-T., Nguyen, L.T.V., Dang-Pham, D. and Hoang, A.-P. (2024), "When young customers co-create value of AI-powered branded app: the mediating role of perceived authenticity", Young Consumers, Vol. 25 No. 5, pp. 557-578. https://doi.org/10.1108/YC-06-2023-1759
Publisher
:Emerald Publishing Limited
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