Consumer Decision Making in a World of Digital Tech and AI
As new technologies emerge, they may fundamentally alter the foundation of market information and consumer decision-making. Advanced systems like generative AI can synthesize vast amounts of data, create personalized content, and even mimic human behaviors, but also come with the risk of misinformation, market distortions, and digital oligopolies. It is crucial to understand how these developments affect consumer decision making in the evolving marketplace.
While new technologies could empower consumers to process information in more sophisticated ways, the impact of these new technologies on consumer decision making is still obscure. New media, products and services emerge from these technologies and a multitude of personalized information can be generated at large scale easily by every player in the market. This might lead to the erosion of a formerly reliable source of information and cause high insecurity and confusion among consumers. Moreover, as these technologies become more advanced and exhibit human-like social behaviors, they are shaping new social relationships with users. The impact of these evolving interactions on consumer decision-making is still a developing area of understanding.
The potential of AI for more efficient and effective business decisions seems huge. While many operational marketing tasks are already automated, the challenging question arises how humans and intelligent machines may collaborate to improve their marketing decision-making on a strategic level.
Virtual reality enables a high degree of experimental control over product representations and shelf design. Augmented reality opens up new ways of supporting purchasing decisions. We are investigating these possibilities in a collaborative project with the Karlsruhe Institute of Technology.
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At the interface between science and practice, we examine, as a non-profit institute, how decisions of consumers and company decision-makers change in the face of new technological and social trends – and what the resulting impacts are. From our research, we generate new and relevant insights into how people can make better decisions in markets.
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