Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

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Detail(s)

Original languageEnglish
Title of host publicationProceedings of the 57th Annual Hawaii International Conference on System Sciences
EditorsTung X. Bui
PublisherHICSS
Pages6858-6867
ISBN (Print)978-0-9981331-7-1
Publication statusPublished - 3 Jan 2024

Publication series

Name
ISSN (Electronic)2572-6862

Conference

Title57th Hawaii International Conference on System Sciences (HICSS-57)
LocationHilton Hawaiian Village Waikiki Beach Resort
PlaceUnited States
CityHonolulu
Period3 - 6 January 2024

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Abstract

This research aimed to examine the moderating role of price sensitivity and explanation for price differences in the relationship between AI disclosure and consumers' revenge behavior, as well as to explore the potential mediating effect of inferred motives. A scenario-based lab experiment was conducted, involving 121 participants who engaged in an online airline ticket booking context. The findings of this study revealed that the positive impact of AI disclosure on revenge behavior was amplified among consumers with high price sensitivity, and this relationship was mediated by inferred motives. Additionally, the provision of explanations alongside AI disclosure was found to increase revenge behavior. These findings contribute to the understanding of consumers' psychological processes and revenge behavior within the context of discriminatory pricing empowered by AI. Moreover, the study offers practical implications for managers aiming to mitigate the negative consequences of discriminatory pricing.

Research Area(s)

  • Artificial Intelligence and Digital Discrimination, ai disclosure, discriminatory pricing, explanation, inferred motives, price sensitivity

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

Does AI Disclosure in Discriminatory Pricing Backfire? The Moderating Role of Price Sensitivity and Explanation for Price Differences. / Peng, Xiao; Peng, Xixian; Xu, David (Jingjun).
Proceedings of the 57th Annual Hawaii International Conference on System Sciences. ed. / Tung X. Bui. HICSS, 2024. p. 6858-6867.

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

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