Importance of AI attributes in Indian retail stores: a conjoint analysis approach

Abstract

Purpose

The study’s objective is to measure the importance consumers attach to AI-based attributes, namely, chatbots, face recognition, virtual fitting room, smart parking and cashier-free station in retail stores. The study also examines the specific purpose of using these attributes for shopping.

Design/methodology/approach

A conjoint experiment was conducted using fractional factorial design. Consumers were given 14 profiles (AI attributes and its levels) to rank according to their visiting preferences.

Findings

The results revealed that the retail chatbot was considered the most important attribute, followed by face recognition, virtual fitting room, smart parking system and cashier-free station. Moreover, consumers prefer to use chatbots for in-store shopping assistance over alerts and updates, customer support and feedback. Similarly, consumers wish a face recognition facility for greetings while entering the store over other services. In addition, cluster analyses revealed that customer groups significantly differ in their preferences for AI-based attributes.

Practical implications

The study guides retail managers to invest in AI technologies to provide consumers with a technology-oriented shopping experience.

Originality/value

Our results provide an insight into the receptivity of AI technologies that consumers would like to experience in their favorite retail stores. The present study contributes to the literature by investigating consumer preferences for various AI technologies and their specific uses for shopping.