EP27 - Why Consumers Prefer AI for Bad News and Humans for Good
Description
When you receive unexpected news from a company, who delivers it may matter more than the news itself. In this episode, we explore a fascinating study from the Journal of Marketing titled Bad News? Send an AI. Good News? Send a Human. The research, led by Aaron Garvey, TaeWoo Kim, and Adam Duhachek, reveals surprising insights about how consumers react to offers depending on whether they come from a human representative or an AI agent.
Listeners will hear how the empirical package of five studies tested situations ranging from concert ticket pricing to ride-sharing fees, showing that people are more willing to accept worse-than-expected offers when delivered by AI, and respond more positively to better-than-expected offers when delivered by humans. We also discuss how making AI more humanlike changes these reactions, why perceived intentions play such a powerful role, and what this means for marketing practices across industries.
This conversation matters because it sheds light on a subtle but important shift in customer relationships. As businesses adopt AI in more consumer-facing roles, understanding when to rely on AI and when to emphasize human connection can affect trust, satisfaction, and long-term engagement. The episode offers a thoughtful look at how technology and psychology intersect, giving you practical insights into communication, strategy, and ethics in an increasingly AI-driven marketplace.
United States
