Taking it personally? A study on the effects of trust and privacy in the context of AI-enabled personalization
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2022-08-31
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en
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Taking it personally? This master thesis studies the effects of trust and privacy in the context of AI-enabled personalization. To do so, it takes the Starbucks Deep Brew platform as an example case. This app enables Starbucks to personalize their in-app recommendations to customers by making use of Artificial Intelligence. Starbucks’ aim is to increase sales by the customer’s intent to upsell and/or cross-sell. As both Starbucks and prior literature indicate, trust and privacy concerns play a pivotal role in this manner. Therefore, the mediating roles of trust and privacy have been investigated in the relationship between AI-enabled personalization and Starbucks’ increased sales.
To do so, a survey has been conducted in the Netherlands and the data has been analyzed using the PLS-SEM method. Results show that in this study, trust and privacy concerns do not play any mediating roles as they are not related to the customer’s intent to upsell and/or cross-sell. These dependent variables are, however, heavily and directly influenced by the AI-enabled personalization of the recommendations in the Starbucks app. Therefore, one of the main managerial implications would be to increase the number of downloads and implement this app in the Netherlands as it rockets Starbucks’ sales.
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Faculteit der Managementwetenschappen