Merchandising/Marketing/Retailing: Management

Conversational AI with a Personal Touch: Effects of Personalization Distinctiveness and Context

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Abstract

This paper proposes the potential impact of distinctiveness as a personalization strategy in conversational artificial intelligence (CAI) agents’ customer service on consumer engagement and attitudes. Using attribution theory, we propose that consumers' situational and dispositional attributions of the motivations behind CAI personalization influence their attitudes and engagement. A distinctive personalization strategy (personalized in some contexts vs. all contexts) may heighten situational attributions, while non-distinctive personalization may facilitate dispositional attributions. We also propose that this effect of CAI personalization distinctiveness on attributions may be moderated by the type of service context (transactional vs. informational). Our conceptual model provides insights for brands on how to optimize CAI agents to facilitate positive consumer interactions and engagement by strategically using personalization. Future research may further examine situational and personal factors that might moderate the proposed effects on consumers' responses to personalized CAI services. 

Keywords: Conversational AI, Artificial Intelligence, Personalization, Distinctiveness

How to Cite:

AL-AMIN, F. & Kwon, W., (2025) “Conversational AI with a Personal Touch: Effects of Personalization Distinctiveness and Context”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21923